| Car pool You can deduct contributions to qualified non-profit organizations: organizations that have been recognized by the IRS as qualified to receive deductible contributions. So find out if a cash contribution to the organization would be deductible.
If the organization is qualified, then the rule is that you can deduct unreimbursed out-of-pocket expenses, such as the cost of gas and oil, that are directly related to the use of your car in giving services to a charitable organization. You cannot deduct any part of general repair and maintenance expenses, depreciation, registration fees, or the costs of tires or insurance. If you do not want to deduct your actual expenses, you can use a standard mileage rate of 14 cents a mile to figure your contribution. You can deduct parking fees and tolls, whether you use your actual expenses or the standard mileage rate. You must keep reliable written records of your car expenses.
The IRS may take the position that driving the children to the games is not “giving services to (the) organization.” You would take the position that it is. You may or may not lose the point if you are audited, but if the organization is qualified, then at least it would be considered a reasonable mistake and no penalty would be charged against you, particularly if your CPA advised you on this. |