Donate Labor To Church Income Tax Question

by Johnny
(Alabama)

Donating Labor To Church Income Tax Question

Donating Labor To Church Income Tax Question

My church owns a rental house. The tenant moved out after 17 years.

I told the church I would provide the work on the inside to get it ready to rent again.

This included prepping all walls and ceiling (remove wallpaper, prime) painting all walls, ceilings, trim, cabinets, doors, removing old carpet, refinishing all hardwood floors, repairing subfloor in a bathroom, installing new laminate floors in both bathrooms and kitchen, repairing ceiling in one room.

I gave them a price of what it would cost if they got an outside contractor to do the work. I told them if they paid for the materials, I would donate my labor cost.

Can this amount be taken as a charitable deduction?

Thank you.

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Jan 20, 2024
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starstarstarstarstar 		Tax Deductions for Volunteer Work
by: BB

In general, volunteer labor is not deductible as a charitable contribution. However, if you incurred out-of-pocket expenses for materials and other related costs, those expenses might be eligible for a charitable deduction. Consult with a tax professional to ensure proper documentation and compliance with tax regulations.

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Donating Business Property

I am a small business owner. I bought a computer for my business in 2022 for $1500 and have depreciated it $924. I have recently donated it to a recycling center. Do I need to file a 4797 and if so, what would be my gross sales price?

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Jan 20, 2024
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starstarstarstarstar 		Equipment Donations Tax Guide
by: BB

Yes, since you donated the computer, you would need to file a 4797 to report the disposition of the asset. The gross sales price for a donated asset is usually its fair market value at the time of donation. It's advisable to consult with a tax professional to ensure accurate reporting.

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Donating Musical Instruments To A School

If I donate a French horn valued at $1000 to a school, what would be the return on an itemized deduction. (Or what is the overall percentage a person gets back from any size donation for an instrument to a school?)

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Jan 20, 2024
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starstarstarstarstar 		Donating Musical Instruments to Schools
by: BB

The return on an itemized deduction for a donated French horn valued at $1000 would depend on your tax bracket. Generally, the deduction is based on your marginal tax rate. If, for example, your tax rate is 20%, the potential tax savings would be $200.

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Donations For Non Profits

by Brandan Cummings
(Seattle, WA)

If you are donating to a non-profit school for your grandchild's education, can you deduct it?

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Jan 20, 2024
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starstarstarstarstar 		Tax Benefits For Education Donations
by: BB

Unfortunately, direct contributions to an individual's education, even if they are your grandchild, are not typically deductible as charitable donations. However, there might be other education-related deductions or credits available. It's recommended to consult with a tax professional for personalized advice based on your specific situation.

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