Welcome to the Quilting Board!

Already a member? Login above
loginabove
OR
To post questions, help other quilters and reduce advertising (like the one on your left), join our quilting community. It's free!

Page 1 of 4 1 2 ... LastLast
Results 1 to 10 of 33

Thread: Tax Time!

  1. #1
    davidwent's Avatar
    Join Date
    Dec 2010
    Location
    Ayer Ma.
    Posts
    501
    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

  2. #2
    Super Member Scissor Queen's Avatar
    Join Date
    Jul 2009
    Location
    Southwest Kansas
    Posts
    4,810
    Quote 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.

  3. #3
    Super Member donnajean's Avatar
    Join Date
    Aug 2007
    Location
    Holland, PA
    Posts
    3,899
    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.

  4. #4
    Super Member
    Join Date
    Oct 2009
    Location
    South Carolina
    Posts
    3,237
    I will ask my daughter she is CPA.

  5. #5
    Power Poster cjomomma's Avatar
    Join Date
    Feb 2010
    Location
    Murray, Ky. Looking for a nice cushy pillow to rest my head on!
    Posts
    16,526
    Blog Entries
    2
    That's a good question. I will be donation quilts this year too. I will watch for the answer.

  6. #6
    Senior Member
    Join Date
    Jul 2010
    Posts
    442
    Quote Originally Posted by Scissor Queen
    Quote 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.

  7. #7
    Super Member Scrap Happy's Avatar
    Join Date
    Jan 2011
    Location
    Florida
    Posts
    7,467
    Blog Entries
    1
    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.

  8. #8
    Super Member Candace's Avatar
    Join Date
    Jan 2010
    Location
    Outer Space
    Posts
    9,669
    ALWAYS take photos!

  9. #9
    Super Member Maride's Avatar
    Join Date
    Sep 2008
    Location
    New York, NY
    Posts
    2,883
    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.

  10. #10
    Moderator Jim's Gem's Avatar
    Join Date
    Jun 2008
    Location
    Camarillo, California
    Posts
    35,389
    The value would be the cost of materials. Your time does not count.

Page 1 of 4 1 2 ... LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  

SEO by vBSEO ©2011, Crawlability, Inc.