 | 
11-01-2008, 10:58 PM
| | Junior Member | | Join Date: Mar 2006
Posts: 19
| | | Pro-Bono work for charity organiztion
What is the name of your state (only U.S. law)? Tennessee
Question: Can pro-bono work for a charity organization be considered a tax deduction?
The Circumstances: My wife has a graphic design business that she does from home which typically brings in $45k - $50k per year. She has a couple of regular clients that are charity organizations that she does pro-bono. Can she deduct the fees she would have charged for similar work done for 'regular' clients?
I am employed full time and we file as "Married Filing Jointly" with her business listed as a sole proprietor including a Schedule C.
ThanksWhat is the name of your state (only U.S. law)? |
11-02-2008, 10:19 AM
| | Senior Member | | Join Date: Mar 2006
Posts: 5,018
| | | In general, no. But the case law is a little scattered when an actual product/item is created. See a tax professional who can review the facts and your tolerance for risk.
__________________
When you are a Bear of Very Little Brain, and you Think of Things, you find sometimes that a Thing which seemed very Thingish inside you is quite different when it gets out into the open and has other people looking at it.
--W. T. Pooh (aka A. A. Milne) |
11-02-2008, 11:07 AM
| | Member | | Join Date: Feb 2006
Posts: 108
| | | No deduction for value of labor
No. She never declared the income, so she cannot take an offsetting deduction for her services. |
11-02-2008, 01:20 PM
| | Senior Member | | Join Date: Mar 2006
Posts: 5,018
| | | While an excellent rule of thumb on helping determine if a person can get a deduction for something, it is not the law.
As I said, see a tax professional who can review your facts. There is case law which supports a deduction if a thing is created and given over. I assume part of a graphic designer will do is create a design and turn it over and the work (actually object) is given to the organization it may gain at least some deduction.
__________________
When you are a Bear of Very Little Brain, and you Think of Things, you find sometimes that a Thing which seemed very Thingish inside you is quite different when it gets out into the open and has other people looking at it.
--W. T. Pooh (aka A. A. Milne) |
11-02-2008, 05:18 PM
| | Senior Member | | Join Date: May 2004
Posts: 33,549
| | Quote:
Originally Posted by tranquility  While an excellent rule of thumb on helping determine if a person can get a deduction for something, it is not the law.
As I said, see a tax professional who can review your facts. There is case law which supports a deduction if a thing is created and given over. I assume part of a graphic designer will do is create a design and turn it over and the work (actually object) is given to the organization it may gain at least some deduction. | I agree, particularly with a charitable donation. If you inherit 100k from your parents and a year later decide to give 20k of it to charity, that's still a charitable donation even though you never included the money in income.
__________________
in vino veritas
Last edited by LdiJ; 11-02-2008 at 05:20 PM.
|
11-02-2008, 06:54 PM
| | Senior Member | | Join Date: Mar 2006
Posts: 5,018
| | | What if one were to donate appreciated stock one has held for over a year?
While I agree the OP probably does not deserve a deduction, I think there is a possibility to get something and a person who wants a deduction needs to see a tax pro.
__________________
When you are a Bear of Very Little Brain, and you Think of Things, you find sometimes that a Thing which seemed very Thingish inside you is quite different when it gets out into the open and has other people looking at it.
--W. T. Pooh (aka A. A. Milne) |
11-02-2008, 08:03 PM
| | Senior Member | | Join Date: May 2004
Posts: 33,549
| | Quote:
Originally Posted by tranquility What if one were to donate appreciated stock one has held for over a year?
While I agree the OP probably does not deserve a deduction, I think there is a possibility to get something and a person who wants a deduction needs to see a tax pro. | I was agreeing with you Tranq.
__________________
in vino veritas |
11-03-2008, 10:03 AM
| | Senior Member | | Join Date: Mar 2006
Posts: 5,018
| | | I know darling, I was just giving another possibility.
__________________
When you are a Bear of Very Little Brain, and you Think of Things, you find sometimes that a Thing which seemed very Thingish inside you is quite different when it gets out into the open and has other people looking at it.
--W. T. Pooh (aka A. A. Milne) | |
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests) | | | | Thread Tools | | | | Display Modes | Rate This Thread |  Linear Mode | | 
Posting Rules
| You may not post new threads You may not post replies You may not post attachments You may not edit your posts
HTML code is Off | | | |
|
