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 |
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 |
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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I will ask my daughter she is CPA.
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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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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 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. |
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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ALWAYS take photos!
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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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The value would be the cost of materials. Your time does not count.
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Candace, you are so right. I used to use disposable cameras and didn't keep one on hand. Now I wish I had those photos.
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what if it's raffled, sold or auctioned by a charity? does that affect the value?
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Opps, I didnt get pictures or do any lists, I just get a letter from the charity. I wonder if I will be able to deduct mine?
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Originally Posted by butterflywing
what if it's raffled, sold or auctioned by a charity? does that affect the value?
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Originally Posted by CarrieAnne
Opps, I didnt get pictures or do any lists, I just get a letter from the charity. I wonder if I will be able to deduct mine?
The other information concerning a description of the quilt, photo, and listing of materials and their cost is necessary is you DIDN'T get a receipt from a charity. Happy deducting! |
what a putty that we can't count our time for taxes also. bummer.
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Originally Posted by sahm4605
what a putty that we can't count our time for taxes also. bummer.
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I believe you have to have a receipt from the organization who received them saying how many, size, etc. to back up your receipts. I am not sure. I just looked at the IRS form but did it read it all.
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Hi. I'm a Project Linus Coordinator in NH. Many volunteers will ask for a Gift In Kind statement when they donate quilts. This form has our Linus information, tax ID, etc., and I add the number of quilts, the date, volunteer's name, etc. We are not allowed to put down a value, as that is the decision of the person who made the quilt(s). So when you find an organization where you are going to donate your quilts, please request this form from them. Some quilters make the determination based on the cost of the materials. Others add in their time.....sometimes they double the cost of the materials. I've not heard of anyone having trouble with the IRS, so good luck!
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Originally Posted by Kathios
Hi. I'm a Project Linus Coordinator in NH. Many volunteers will ask for a Gift In Kind statement when they donate quilts. This form has our Linus information, tax ID, etc., and I add the number of quilts, the date, volunteer's name, etc. We are not allowed to put down a value, as that is the decision of the person who made the quilt(s). So when you find an organization where you are going to donate your quilts, please request this form from them. Some quilters make the determination based on the cost of the materials. Others add in their time.....sometimes they double the cost of the materials. I've not heard of anyone having trouble with the IRS, so good luck!
http://www.irs.gov/newsroom/article/0,,id=106990,00.html |
I donated a kitchen stove to Habitat for Humanity. They gave me a receipt and said to fill in the value myself. The stove was originally $1200, is 5 years old and I am saying it is $500 because it has a convection oven and is in good shape.
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MomToBostonTerriers: Thanks so much for the info and the link. I'm printing the info so I have proof that you are not able to include the time and effort that went into making the Project Linus quilt. Sure makes my job easier!
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If you have them appraised you can deduct the value, but the appraisal would cost more than what you'd save on taxes.
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Mr Davidwent, are you the one with the longarm and do you do quilting as a business. If you do have a business doing quilting for the public then you can take a deduction as charitable contribution on quilts. If not then doing the schedule A is the only way to go. Maria--TX preparer and business owner.
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Because I kept seeing this " Tax" thread but avoided looking, I now DO have my taxes 90% ready to go to Tax Lady. I just thought people were moaning and I so hate to get ready for my taxes. I keep my stuff together but do not keep a record book.....next time, I will read the thread first, feel guilty later....but thanks, cuase now that Tax unpleasantness is out of the way!
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I haven't had any problem deducting mine over the years. I usually get a letter or form signed from the charity. I write on the back what type of quilt, size, date and what I est. the cost of materials. I think adding the pic is a great ideal tho'
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I think you can only deduct the cost of fabric, pattern etc so keep your receipts. :-)
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I am pretty sure that if you have to ship these donation quilts (Downey) that the postage is also deductable.
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Originally Posted by MomtoBostonTerriers
Originally Posted by butterflywing
what if it's raffled, sold or auctioned by a charity? does that affect the value?
piney |
Thanks for this information. Better safe than sorry!
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What a timely topic and all good information. :thumbup:
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Good to know. Thanks.
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I drove about 2,000 miles last year for my non-profit quilting groups, the tax man used it as a deduction
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