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Thread: Tax Time!

  1. #1
    davidwent's Avatar
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    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
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    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
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    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
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    I will ask my daughter she is CPA.

  5. #5
    Power Poster cjomomma's Avatar
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    That's a good question. I will be donation quilts this year too. I will watch for the answer.

  6. #6
    Senior Member MomtoBostonTerriers's Avatar
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    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
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    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
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    ALWAYS take photos!

  9. #9
    Super Member Maride's Avatar
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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.

  10. #10
    Moderator Jim's Gem's Avatar
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    The value would be the cost of materials. Your time does not count.

  11. #11
    Super Member Scrap Happy's Avatar
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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.

  12. #12
    Super Member butterflywing's Avatar
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    what if it's raffled, sold or auctioned by a charity? does that affect the value?

  13. #13
    Power Poster CarrieAnne's Avatar
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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?

  14. #14
    Senior Member MomtoBostonTerriers's Avatar
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    Quote Originally Posted by butterflywing
    what if it's raffled, sold or auctioned by a charity? does that affect the value?
    No. Your charitable tax deduction is the value of the goods that YOU put into the quilt. If your quilt is auctioned off for $50,000 (as well it should be), well, that's to the benefit of the charity. But it doesn't affect how much it cost you to make the quilt.

  15. #15
    Senior Member MomtoBostonTerriers's Avatar
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    Quote 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?
    Of course you can. A letter from the charity is all you need.

    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!

  16. #16
    Super Member sahm4605's Avatar
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    what a putty that we can't count our time for taxes also. bummer.

  17. #17
    Senior Member MomtoBostonTerriers's Avatar
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    Quote Originally Posted by sahm4605
    what a putty that we can't count our time for taxes also. bummer.
    Ain't it the truth! That lap quilt I gave away at Christmas would be valued at a gazillion dollars.

  18. #18
    Junior Member doglover's Avatar
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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.

  19. #19
    Senior Member Kathios's Avatar
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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!

  20. #20
    Senior Member MomtoBostonTerriers's Avatar
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    Quote 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!
    Sigh. Some folks probably do add in the value of their time, but that is specifically prohibited by the IRS Code. It is fraud. Although some people get away with it, it is still fraud. See item #2 in the attached article.

    http://www.irs.gov/newsroom/article/0,,id=106990,00.html

  21. #21
    Super Member OmaForFour's Avatar
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    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.

  22. #22
    Senior Member Kathios's Avatar
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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!

  23. #23
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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.

  24. #24
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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.

  25. #25
    leonajo's Avatar
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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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