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Tax Time!

Tax Time!

Old 01-29-2011, 06:34 AM
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I know I know bad bad words :D I am just curious,I plan on donating quilts this year. Can that be a deduction on next years taxes? If so how do I determine the value?
Thank you!
David
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Old 01-29-2011, 06:36 AM
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Originally Posted by davidwent
I know I know bad bad words :D I am just curious,I plan on donating quilts this year. Can that be a deduction on next years taxes? If so how do I determine the value?
Thank you!
David
You can deduct them as a non cash contribution on Schedule A. The value is just the cost of the fabric and batting.
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Old 01-29-2011, 06:39 AM
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Good question. I would think you could claim the cost of the materials, but I doubt you could claim for time put in. You have to have a receipt for everything now to claim the deduction. Also, it has to be a "qualified" charity/organization that you are donating to.
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Old 01-29-2011, 06:41 AM
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I will ask my daughter she is CPA.
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Old 01-29-2011, 07:29 AM
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That's a good question. I will be donation quilts this year too. I will watch for the answer.
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Old 01-29-2011, 08:48 AM
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Originally Posted by Scissor Queen
Originally Posted by davidwent
I know I know bad bad words :D I am just curious,I plan on donating quilts this year. Can that be a deduction on next years taxes? If so how do I determine the value?
Thank you!
David
You can deduct them as a non cash contribution on Schedule A. The value is just the cost of the fabric and batting.
Here's free advice from a CPA: Scissor Queen is correct. You can deduct the cost of the materials you spent to make the quilts. This doesn't have to be a format cash register receipt from a store, but you need to write out a list of everything you used to make the quilt (fabric, batting, blah, blah) and the fair market value of each (i.e. what you paid for that item in a store). Add it up. Date it. Write other details such as a description of the quilt and to whom it was donated. If you are REALLY good, you can take a photo of the quilt and attach it to your receipt list as evidence of the beautiful quilt you made and donated. If the organization to which you donated the quilt give you a receipt (one of those receipts where you fill in the value of the item yourself), just attach it to your information.

The IRS will accept such information as a valid receipt -- but it needs to be done at the time you make the donation (not 3 years later when the IRS wants to audit your tax return). The IRS personnel are real people (I've done that job, too) and they will accept reasonable information to show the value of the item you donated.
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Old 01-29-2011, 09:07 AM
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Thanks for the info. The part about taking pics is a good idea because I haven't taken pictures of the quilts I've made for others whether it's quilt for charity or a gift for a loved one. Now I will regardless either way.
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Old 01-29-2011, 09:55 AM
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ALWAYS take photos!
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Old 01-29-2011, 10:04 AM
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You need an official receipt from the charity receiving it, otherwise it may not be accepted. You determine the value, but it may be challenged and given commercial market value by the IRS.
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Old 01-29-2011, 10:29 AM
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The value would be the cost of materials. Your time does not count.
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