Deduction For Charitable Probono Work.

[Bob Stainbrook]

I donate a full SFR URAR appraisal for different types of fund raisers in our area ( golf outings, chinese auctions, reverse raffles, etc.). I use a form that a lawyer friend drew up to cover my butt ( aka USPAP . It looks and works good for PR & advertising in the community. I have even received new business ( alot of golf outing charity events = and you know how much time our clients / banks spend at these events -- haha ) at these since my competitors don't usually do this ( have great working relationship with the better appraisers in our area ) and I basically say in the disclaimer that we are not responcible for an out of state lender that we're not on their list. The time limit is 1 year from the day of the event and covers only SFR and the counties we cover. I put the value @ $ 300.00 and take it as a tax deductable, provided that it's a valid and legal charity. What's funny about these is I never had to do one for a federally funded lender. People usually have us do a full appraisal for their estate and/or their portfolio or insurance purposes = you know the ones that they want to really know the TRUE VALUE of their home.

 

[xmrdfghap]

Dean, you and Pat are absolutely right. If they pay you, and you donate the payment back to the charity, it is a wash. The expenses you incur developing that report, though, ARE deductions. For example, if you decide to travel to Orlando and look at similar projects, then the expense of that visit can be deducted. Just keep the photos of those other projects in your workfile.

But, the purpose of a charitable contribution is supposed to be altruistic isn't it? It should not be done for gain.

Just for chuckles and a little brainstorming, when the project is finished, how about offering a prize for the first team that hits a grand slam home run or the first team to pitch a no hitter? I recall a marketing course talking about "out of the box" advertising where they told of a businessman who, during a local golf tournament, offered a $1,000,000 cash prize if anyone hit a hole in one on a specific hole. (I assume it was a par 4 or 5 hole ) Although he did not have the million bucks, he arraigned for Lloyd's of London to underwrite it and he paid the premium (cost him a couple of hundred dollars). It generated huge amounts of publicity for him and his business in the local media.......it made headlines when a guy almost hit it, but over night the guy became a household word and was projected to the top of the list of local civic minded people. He managed, for a few hundred dollars, to get the kind of name recognition that people spend tens of thousands to create.

 

[Head Surfer]

Dean, (and everyone)

Please DO NOT post the same topic in more than one forum! Choose the forum most suited for your post and post it ONCE!

I am merging the replies from this post to your other post in the commercial forum.

 

[Dean Adams]

I put the value @ $ 300.00 and take it as a tax deductable, provided that it's a valid and legal charity.

So, you include a charitable donation on your tax return for $300 for one of these donated appraisals? Do you have any documentation from the charity on your donation? Do you have an accountant agree with how you are handling this?

ps. sorry about the double posting. Consider my wrist slapped.

But, the purpose of a charitable contribution is supposed to be altruistic isn't it? It should not be done for gain.

Look, it's already in the can and I did it for free. I did it to help the park, not for gain. I agreed to do it whether or not I could claim a deduction, but if I CAN claim a deduction and save some taxes I intend to do it.

 

[Paul Shraga]

Dean,

The theory behind the tax law is you can take deductions against taxable earned income.

In a nutshell, the IRS does not allow for "time is money" deductions, thus whatever you may have charged the charity for the appraisal cannot be deducted since you have not generated taxable income. I agree with the previous posts, if you have them pay you then write the charity a check in the same amount it is basically a non-event.

What CAN be deducted on your handy dandy sked A is your out of pocket expenses directly related to your charitable work i.e. cost of paper, toner, driving miles to the tune of a whopping 14 cents a mile or so and any other expenses incurred while you were doing this specific appraisal.

Hope that helps.

Paul

 

[Farm Gal]

errr.

Paul: "14 cents a mile" has been out of fashion at the IRS annual gala and charitable donation events for years...
Check your Lassers or the IRS.gov webste sir.

the current mileabge deduction amount approximates that of a first class stamp.

 

[Paul Shraga]

For general charitable contribution info:

http://www.irs.gov/pub/irs-pdf/p526.pdf

NOTE: This pub will talk about "appraisal fees", this pertains to money YOU paid to have a value
put on any type of property YOU have donated.

For more specifics on Sked A:

http://www.irs.gov/pub/irs-pdf/i1040sa.pdf


Contributions You May Deduct

Contributions may be in cash (keep canceled
checks, receipts, or other reliable written re-cords
showing the name of the organization
and the date and amount given), property,
or out-of-pocket expenses you paid to do
volunteer work for the kinds of organiza-tions
described earlier. If you drove to and
from the volunteer work, you may take
14 cents a mile or the actual cost of gas and
oil. Add parking and tolls to the amount you
claim under either method. But do not
deduct any amounts that were repaid to you.

.... nuff said ....


hey..if appraising don't work out for me there's always an E.A. which I may do anyways

 

[Terrel L. Shields]

Paul is so right about this....and many "charitable" organizations are not tax exempt....i.e. - you cannot deduct a donation to just everything. If you donate to some telemarketer claiming to represent the Police widows and orphans fund, ask them if it is tax deductable...nope. 'cause they know lying is wire fraud...inticing you to donate $50 out of which they will donate a $1 to the FOP W & O Fund is not.

You can deduct your cost of doing business during that time, but your efforts are truly a donation.