Pro-Bono work for charity organiztion

[Goodfella]

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)?

[tranquility]

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.

[mtpockets]

No. She never declared the income, so she cannot take an offsetting deduction for her services.

[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.

[LdiJ]

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.

[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.

[LdiJ]

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.

[tranquility]

I know darling, I was just giving another possibility.