hsquiltingmom

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

gramajo

I'm not 100% sure this is correct, but it is my understanding you can only deduct the cost of your supplies (ie fabric and thread), not the cost of your time.

dakotamaid

That is correct according to my tax guy.

Lori S

Yes you can only use the actual cost of fabric , and supplies for tax deduction purposes. As for selection of design..of the quilt. I try to pick a pattern and colors that have a broad appeal if its a raffle quilt. If it going directly to a person or charity that has a specific focus, I try to stay with that theme, for example kids prints or bright colors and patterns for Children's charities.

Jingle

That would be too much hassle for me. I just give my quilts to friends family and people I don't even know.

dunster

I agree that you can't put a value on your time for charitable giving. However, I'm not sure that the answer of "cost of materials" is entirely correct. The tax code says that you must base the deduction on the fair market value of the gift, which could be more or less than what you spent on supplies. It's confusing and difficult to establish a fair market value for a quilt. Trying to substantiate that value in an audit would be horrendous.

ckcowl

i make alot of 'charity quilts' and it is true- you can only deduct what materials you purchase----and you need receipts!
i keep good records and include a picture of the quilt- sometimes with a picture of the fabrics before they are cut...i keep a file with my (expenses) receipts and a notebook with donation quilt information- what fabric i used, when it was purchased, the price- the quilt details (size, pattern) where it was donated and when.

Tink's Mom

I wonder if you can also deduct the postage for sending donation quilts?

RedGarnet222

When I turn in the cost of the silent auction quilts donated to the diabetes association here in reno, I also include the postage amount and the quilt amount on the sheet. So far, the donors were sent a donation letter with the whole total, tink's mom. I don't know about any other organization. My other quilt donations are taken directly to the buildings I donate to. Like the animal shelter, children's cabinet and seinor centers.

sweetana3

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.