How to Donate Your Services for a Tax Deduction
- 1). Install new windows for a church. The market value of the windows and trim (anything tangible) can count as a deduction. Any parts or material donated by someone can be deducted.
- 2). Donate money in exchange for goods or services of lesser value and deduct the difference. For instance, if you donate $100 and receive concert tickets worth $40, you can deduct $60.
- 3). Give away items. If that old refrigerator has a fair market value of $50, then you can deduct the whole $50. Remember – it’s only the current market value that can be deducted.
- 4). Deduct the cost of travel. Even though volunteer work is not deductible, you may deduct the cost of fuel, mileage and other travel expenses for volunteering that was not reimbursed. Bus fares, cab fees, parking fees and toll costs are deductible.
- 5). Maintain records. According to the IRS, volunteers should keep a record of all qualifying charitable services and volunteer travel expenses. The records should include the name of the organization helped, date of service, distance traveled and other costs. Provide odometer readings and receipts.
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