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Thread: Tax deductions

  1. #1
    Join Date
    Feb 2011

    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

  2. #2
    Senior Member cowpie2's Avatar
    Join Date
    Jul 2010
    St. Paul, MN
    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.

  3. #3
    Senior Member
    Join Date
    Nov 2010
    Blog Entries
    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.

  4. #4
    Power Poster ckcowl's Avatar
    Join Date
    Feb 2009
    Northern Michigan
    Blog Entries
    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.
    hiding away in my stash where i'm warm, safe and happy

  5. #5
    Junior Member gigigray032447's Avatar
    Join Date
    Jan 2011
    North Carolina
    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.

  6. #6
    Senior Member
    Join Date
    Jul 2011
    Dillsburg, PA
    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.

  7. #7
    Super Member ghostrider's Avatar
    Join Date
    Jan 2009
    Quote Originally Posted by LindaM49 View Post
    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.
    One word of caution, the amount claimed by the taxpayer must be donor assigned. The charity is not supposed to put any dollar amount on the receipt they give the donor. That's why it's critical that you have receipts for "new" goods donated or use generally accepted values (there are several lists available) for "used" goods donated.
    The Earth without art is just "Eh".

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