Quilts for charity
01-08-2013, 11:01 AM
#11
Super Member
Join Date: Jul 2009
Location: Southwest Kansas
Posts: 4,820
Publication 526 gives all the information on donations. Must be a qualified organization. Must be generally the lesser of fair market value or basis which is the $$ amount paid to purchase the materials to make the product and any purchases services like quilting that went into producing the product. Your own time or any appreciation is not counted.
So many forget that the organization must be qualified and it is not fair market value unless it is less than cost. Like clothes donated to Goodwill, it is the lesser value rather than what you paid for them.
Stocks and cars have unique implications.
Wise to read the Publication for specifics.
So many forget that the organization must be qualified and it is not fair market value unless it is less than cost. Like clothes donated to Goodwill, it is the lesser value rather than what you paid for them.
Stocks and cars have unique implications.
Wise to read the Publication for specifics.
01-08-2013, 11:47 AM
#12
Super Member
Join Date: Aug 2010
Location: S. W. Indiana
Posts: 7,484
Hi everyone,
I wondered how many of you make quilts for charity, and also use them for a tax deduction. I would be curious how you decide what to make the value of the donation. I love using my scraps and donating, but it also helps when I can use that for my taxes.
Thanks
I wondered how many of you make quilts for charity, and also use them for a tax deduction. I would be curious how you decide what to make the value of the donation. I love using my scraps and donating, but it also helps when I can use that for my taxes.
Thanks
01-08-2013, 06:51 PM
#14
Super Member
Join Date: Dec 2011
Location: Horse Country, FL
Posts: 7,341
I deduct the cost of the material and thread. It is usually warm here, so we don't use batting. My CPA also allows for one sewing machine tune up a year. I do not deduct for sewing machine needles. I do take photos of blankies and dresses made for donation in case I ever need it for the "guh-ment." (Forest Gump)
01-08-2013, 07:00 PM
#15
Power Poster
Join Date: Dec 2010
Location: Northern California mountains
Posts: 12,538
According to the IRS person I contacted on this point, (and the Turbo Tax forms), one can use "comparable value". For example, if quilt of mine of similar complexity and size sold for X$, I may use that as the value. USED quilts like used clothing,would be a different thing entirely.
01-09-2013, 06:15 AM
#16
Power Poster
Join Date: Jan 2009
Location: Front row
Posts: 14,646
Save the receipts for all supplies and be sure the receipts are itemized if you plan to use a quilt donation for a deduction. You can't use the wear of machine or power cost to make the quilt unless you file as a business. And the place you donate it to has to be profit making and declare it I think. This is the way it use to be.
01-09-2013, 06:54 AM
#17
Super Member
Join Date: Oct 2010
Location: Tennessee, UC area
Posts: 1,584
I donate to local Nursing home--little quilts and wheelchair / walker bags...never ever filed a claim. It's called "donation". I believe we should all give back if we've been blessed by.."there, but for the grace of God, go I".
01-09-2013, 07:54 AM
#19
Senior Member
Join Date: Jan 2011
Location: Boston, MA area
Posts: 970
I haven't tracked my expenses for deduction. I make the charity quilts for my pleasure because I love to make them and have run out of people to give them to.
But that's me.
You should consult a tax professional to be sure that you are deducting only what's appropriate and not missing something that you may deduct.
But that's me.
You should consult a tax professional to be sure that you are deducting only what's appropriate and not missing something that you may deduct.
01-09-2013, 08:05 AM
#20
Super Member
Join Date: Sep 2011
Location: West Texas
Posts: 2,073
I think that documentation, as mentioned about saving the receipts, is important. It is also good to have a "thank you" or other note from the non-profit organization, which will be the verification that a donation was actually received from you.
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