Tax deductions
I'm wondering if anyone has taken a deduction for charity quilts they have donated to Cancer Centers and Homeless Shelters. I get mixed answers ont his question
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I'm not an accountant, so this is just my general knowledge. If you donate a quilt you make to a 503C non profit, you can deduct the cost of the materials used less any benefit you received (if any). I do not believe you can deduct your time or effort. You will likely want to save receipts in case you are ever audited.
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I have a friend who has been a tax preparer for years and this is the same information that she has given me. You get no credit for your time, only supplies. I never bother saving all those receipts as I'm just not that organized.
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in order to use a tax credit for your charitable donation you need a reciept---good records- you are allowed to
'claim' the cost of materials used---no time- no market value- and you need a receipt- it has to be a legitimate (tax exempt) charity that is recognized by the irs. paperwork is very important---you need to save your reciepts for your materials you are claiming-plus have the donation receipt. |
I take the fabric deduction each year. I keep my receipts and then give to my CPA with all the other info. You'd be surprised at how much you spend if you donate many quilts each year like I do.
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Agree. I have a small in home business pouring and selling candles. A few years ago I got a call from my church asking me if I had any cases of a certain style jar. My best friend was a CCD teacher and had bought candles from me to give to the other teachers and advisors for Christmas. They liked the jar and wanted to use them for a CCD project. I did have the jars and they were willing to pay me for them...I said no. I donated the jars to them and they gave me a receipt for the wholesale price that I paid to my supplier. And that's what I used for the deduction on our income taxes. And if I do a craft show or open house and give candles as prizes...I can only deduct the actual cost to make the product...not what it would cost retail.
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Originally Posted by LindaM49
(Post 4915150)
I donated the jars to them and they gave me a receipt for the wholesale price that I paid to my supplier. And that's what I used for the deduction on our income taxes.
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