| Author |
Message |
Guest
|
 Posted:
Wed Oct 19, 2005 8:00 am Post subject:
Can I deduct donated time? |
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|
I am a recently-retired professional. I want to donate my
expertise to a project for a public library.
Would the value of my time be deductible? As a charitable
deduction or as something else (what)? How would I valuate
my time? What documentation must I have in the event of an
audit or for filing purposes?
Regarding the valuation question, I know what I was paid
before I retired. I would be doing "similar" work for the
library project. But I do not know what the "going rate"
might be for such consulting time. I am worried that my
prorated hourly wage exceeds the "going rate". Should I be
concerned about that?
Are there any other questions that I should be asking?
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Bill
Guest
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| Posted:
Thu Oct 20, 2005 8:00 am Post subject:
Re: Can I deduct donated time? |
|
|
nomail1983@hotmail.com asked:
| Quote: | I am a recently-retired professional. I want to
donate my expertise to a project for a public
library.
Would the value of my time be deductible? As
a charitable deduction or as something else
(what)? How would I valuate my time? What
documentation must I have in the event of an
audit or for filing purposes?
(remainder elided for brevity)
|
No. Your _time_ cannot be capitalized and expensed as a
contribution.
Bill
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<< Copyright (2005) - All rights reserved. >>
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Mark Rigotti
Guest
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| Posted:
Thu Oct 20, 2005 8:00 am Post subject:
Re: Can I deduct donated time? |
|
|
"nomail1983@hotmail.com> wrote:
I am a recently-retired professional. I want to donate my
expertise to a project for a public library.
Would the value of my time be deductible? As a charitable
deduction or as something else (what)? How would I valuate
my time? What documentation must I have in the event of an
audit or for filing purposes?
Regarding the valuation question, I know what I was paid
before I retired. I would be doing "similar" work for the
library project. But I do not know what the "going rate"
might be for such consulting time. I am worried that my
prorated hourly wage exceeds the "going rate". Should I be
concerned about that?
Are there any other questions that I should be asking?"
Well most are going to say no - however - there is a way.
Pick up the "value" of your time on Schedule C (yes pick it
up as income) pay federal, state, social security and
medicare taxes on it and then deduct the full value on
schedule A. Not an attractive method however, since fed tax
is say 15%, SE tax another 15.3% and state is say another
5%. Youd have to pay 35% tax on the "donation".
I had one client years ago who insisted that he could deduct
his time. So I prepared the return with the deduction -
picked up the income and showed him just how much it would
cost him to take the deduction. He's turned out to be one
of my best clients - ALWAYS calls now before doing ANYTHING
FINANCIAL just to find out if there is something he is
missing.
Regards,
Mark
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2005) - All rights reserved. >>
<< ======================================================= >>
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Rich Carreiro
Guest
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| Posted:
Thu Oct 20, 2005 8:00 am Post subject:
Re: Can I deduct donated time? |
|
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nomail1983@hotmail.com writes:
| Quote: | I am a recently-retired professional. I want to donate my
expertise to a project for a public library.
Would the value of my time be deductible?
|
No, it's not.
--
Rich Carreiro rlcarr@animato.arlington.ma.us
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2005) - All rights reserved. >>
<< ======================================================= >> |
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Barry Margolin
Guest
|
| Posted:
Thu Oct 20, 2005 8:00 am Post subject:
Re: Can I deduct donated time? |
|
|
nomail1983@hotmail.com wrote:
| Quote: | I am a recently-retired professional. I want to donate my
expertise to a project for a public library.
Would the value of my time be deductible? As a charitable
deduction or as something else (what)? How would I valuate
my time? What documentation must I have in the event of an
audit or for filing purposes?
|
No, you can claim out-of-pocket expenses, but not the value
of your time. This is a frequently asked question here, I'm
sure you can find previous threads on it if you just search
Google.
--
Barry Margolin, barmar@alum.mit.edu
Arlington, MA
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2005) - All rights reserved. >>
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Seth Breidbart
Guest
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| Posted:
Thu Oct 20, 2005 8:00 am Post subject:
Re: Can I deduct donated time? |
|
|
<nomail1983@hotmail.com> wrote:
| Quote: | I am a recently-retired professional. I want to donate my
expertise to a project for a public library.
Would the value of my time be deductible?
|
No.
Your out-of-pocket expenses could be, as well as travel
mileage.
Seth
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2005) - All rights reserved. >>
<< ======================================================= >> |
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Phil Marti
Guest
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| Posted:
Thu Oct 20, 2005 8:00 am Post subject:
Re: Can I deduct donated time? |
|
|
<nomail1983@hotmail.com> wrote:
| Quote: | I am a recently-retired professional. I want to donate my
expertise to a project for a public library.
Would the value of my time be deductible?
|
No, no matter how you craft it. You can deduct mileage and
out-of-pocket expenses for providing charitable services,
but that's it.
See the Schedule A instructions.
--
Phil Marti
Clarksburg, MD
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2005) - All rights reserved. >>
<< ======================================================= >> |
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effi
Guest
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| Posted:
Thu Oct 20, 2005 8:00 am Post subject:
Re: Can I deduct donated time? |
|
|
<nomail1983@hotmail.com> wrote:
| Quote: | I am a recently-retired professional. I want to donate my
expertise to a project for a public library.
Would the value of my time be deductible? As a charitable
deduction or as something else (what)? How would I valuate
my time? What documentation must I have in the event of an
audit or for filing purposes?
Regarding the valuation question, I know what I was paid
before I retired. I would be doing "similar" work for the
library project. But I do not know what the "going rate"
might be for such consulting time. I am worried that my
prorated hourly wage exceeds the "going rate". Should I be
concerned about that?
Are there any other questions that I should be asking?
|
One word answer, no, you cannot deduct your time.
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2005) - All rights reserved. >>
<< ======================================================= >> |
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Paul Thomas
Guest
|
| Posted:
Thu Oct 20, 2005 8:00 am Post subject:
Re: Can I deduct donated time? |
|
|
<nomail1983@hotmail.com> wrote
| Quote: | I am a recently-retired professional. I want to donate my
expertise to a project for a public library.
Would the value of my time be deductible?
|
Nope.
Not under any circumstances.
--
Paul A. Thomas, CPA
Athens, Georgia
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2005) - All rights reserved. >>
<< ======================================================= >> |
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Mark H
Guest
|
| Posted:
Thu Oct 20, 2005 8:00 am Post subject:
Re: Can I deduct donated time? |
|
|
<nomail1983@hotmail.com> wrote:
| Quote: | I am a recently-retired professional. I want to donate my
expertise to a project for a public library.
Would the value of my time be deductible? As a charitable
deduction or as something else (what)? How would I valuate
my time? What documentation must I have in the event of an
audit or for filing purposes?
Regarding the valuation question, I know what I was paid
before I retired. I would be doing "similar" work for the
library project. But I do not know what the "going rate"
might be for such consulting time. I am worried that my
prorated hourly wage exceeds the "going rate". Should I be
concerned about that?
Are there any other questions that I should be asking?
|
If you incur direct expenses in donating your time, those
expenses are deductible as a charitable contribution (e.g.,
you bring supplies with you to the library to do your
volunteer work). Your time however, cannot be assigned a
value and is non-deductible.
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2005) - All rights reserved. >>
<< ======================================================= >> |
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Shyster1040
Guest
|
| Posted:
Thu Oct 20, 2005 8:00 am Post subject:
Re: Can I deduct donated time? |
|
|
No. Treasury Regulation 1.170A-1(g), 26 CFR 1.170A-1(g),
does not permit a deduction for the contribution of
services. You may, however, deduct certain expenses related
to your contribution of services. The IRS provides general
information in Publication 526 (you can get it online from
www.irs.gov).
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2005) - All rights reserved. >>
<< ======================================================= >> |
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Arthur Kamlet
Guest
|
| Posted:
Thu Oct 20, 2005 8:00 am Post subject:
Re: Can I deduct donated time? |
|
|
<nomail1983@hotmail.com> wrote:
| Quote: | I am a recently-retired professional. I want to donate my
expertise to a project for a public library.
Would the value of my time be deductible?
|
No.
The value of your time and services would not be deductible.
Only actual out-of-pocket expenses would be deductible.
__
Art Kamlet ArtKamlet @ AOL.com Columbus OH K2PZH
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2005) - All rights reserved. >>
<< ======================================================= >> |
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Herb Smith
Guest
|
| Posted:
Thu Oct 20, 2005 8:00 am Post subject:
Re: Can I deduct donated time? |
|
|
nomail1983@hotmail.com wrote:
| Quote: | I am a recently-retired professional. I want to donate my
expertise to a project for a public library.
Would the value of my time be deductible? As a charitable
deduction or as something else (what)? How would I valuate
my time? What documentation must I have in the event of an
audit or for filing purposes?
|
Your time has NO VALUE for tax purposes and is not
deductible. However, any out-of-pocket expenses and mileage
directly related to this volunteer work are deductible
(assuming your itemized deductions exceed the standard
deduction amount for your filing status). That is why it is
called VOLUNTEERING!
| Quote: | Regarding the valuation question, I know what I was paid
before I retired. I would be doing "similar" work for the
library project. But I do not know what the "going rate"
might be for such consulting time. I am worried that my
prorated hourly wage exceeds the "going rate". Should I be
concerned about that?
|
All irrelevant.
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2005) - All rights reserved. >>
<< ======================================================= >> |
|
| Back to top |
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|
Andrew
Guest
|
| Posted:
Thu Oct 20, 2005 8:00 am Post subject:
Re: Can I deduct donated time? |
|
|
nomail1983@hotmail.com wrote:
| Quote: | I am a recently-retired professional. I want to donate my
expertise to a project for a public library.
Would the value of my time be deductible? As a charitable
deduction or as something else (what)? How would I valuate
my time? What documentation must I have in the event of an
audit or for filing purposes?
Regarding the valuation question, I know what I was paid
before I retired. I would be doing "similar" work for the
library project. But I do not know what the "going rate"
might be for such consulting time. I am worried that my
prorated hourly wage exceeds the "going rate". Should I be
concerned about that?
Are there any other questions that I should be asking?
|
Good news! You don't need to worry about all your questions
like how much your time is worth, and what the going rate
is! Imagine how much time this will save you in research!
Bad news! You can't deduct your time! (See IRS Pub 526
(http://www.irs.gov/pub/irs-pdf/p526.pdf), page 6.)
--
-------------------------------------------------------------
Regards -
- Andrew
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2005) - All rights reserved. >>
<< ======================================================= >> |
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Katie
Guest
|
| Posted:
Thu Oct 20, 2005 8:00 am Post subject:
Re: Can I deduct donated time? |
|
|
You can't deduct the value of your time, so don't bother
trying to evaluate it. You can deduct any out-of-pocket
expenses, including mileage at the reduced rate applicable
to charitable contributions.
Katie in San Diego
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2005) - All rights reserved. >>
<< ======================================================= >> |
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