debatable values regarding tax write-offs?

Question

As I understand it most items can be written off your taxes base on market value, such as Kelley Blue Book listings for cars donated to charity.  Or written off based on the amount of cash the charity gets when they auction/sell the item you donate.

How does this valuing system work for things that cannot easily be assigned a value?  Therapy dogs come to mind.  If I raise dogs (I don't) and they are used in therapy akin to a mental health treatment plan then they would, at least on the surface, be worth as much as a degree in psychology. Though I doubt the IRS would let somebody claim that amount.  

Or time.  If you teach Boy Scouts to play baseball do you write this off based on your usual earnings per hour, or what the value is perceived at?  If you played minor league ball you could probably claim a higher rate than an average American.

StephenWeinstein · Accepted Answer

1. For cars, and only for cars, if the charity sells it, then you write off the amount for which the charity sells it.  You do not do this for any other type of donation.  This is only for cars that the charity sells.
2. For any property (physical object) that is not a car, you write off its value.  For a dog, that means that amount for which dogs are bought and sold, which is practically nothing for mutts and common breeds, but may be high for a few breeds.  You do not write off the value of the therapy or the cost of paying a human to provide the therapy.  You find out what a dog costs, and that it the amount of your write-off.
3. For a car that the charity uses and does not sell, you write off its value (Keely Blue Book or whatever).
4. If you teach Boy Scouts to play baseball, you can only write-off your out of pocket expenses, such as gas or the baseballs.  You cannot claim any rate for your time.  You are specifically prohibited from claiming anything, even one penny, for the value of your time or your blood.  You are allowed a write off only for things that are your property, and are not a part of you.  You are not allowed to write off time given to charity, blood given to a blood bank, or anything else that comes from your body.

Anonymous · Answer

"As I understand it" is wrong.

Starting a few years ago, the IRS started requiring charities to provide proof of what the car brought at auction.  That's the limit on the deduction.  The IRS will not take the Kelly BB value.

As for time your time, you get to deduct $0.  You can deduct your mileage to get to the BSA meetings, but not your time.

As for raising dogs and then donating one, the donation of livestock/inventory is different.  You would be limited to your cost basis.  If you didn't buy the dog, no deduction.

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debatable values regarding tax write-offs?

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