Traveling to help nonprofit. How do deductions work?

Mr. Harper,

Kudos for doing the volunteer work, we need more people like you.

On the other hand, we need less people like those who attempted to answer your questions based on how they *thought* it works, as opposed to actual rules. Colleagues, open the darn book before answering questions, will ya please? Rant over.

1. It will be a little stretch to say the entire trip was charitable work, but considering your estimate that it was 80% so, the stretch is admissible. However, if you want to be extra compliant, you may either disregard expenses for the days spent on personal purposes, or alternatively pro-rate the entire expenses based on 80/20 ratio. Keep in mind that if you work for charity on Friday and Monday, the weekend in between normally counts as charitable time, even if spent with family.

2. Lodging is certainly deductible, en-route or at the destination. If you pay lodging to your parents, then that counts too, but only if you actually pay them. And to them, this would be taxable income. I understand potential complications of staying with parents, but if your *only* reason to rent a motel is to generate a tax deduction, you will not save anything. Tax deduction does not reimburse you for the cost of the motel, only provides some discount.

3. Meals when out of town on charitable work are deductible, contrary to the opinions expressed here. See my 2nd link please. Keep track of the meals, and 50% of them is your deduction. Unfortunately, the daily allowance (per diem) will not apply to charitable work, only actual meals. See my 3rd link please.

4. For your car, you can use mileage allowance or actual expenses. Mileage allowance is too small (14 cents) so actual expenses can be a better deal. As far as tires and repairs, no luck, sorry. This is what the IRS publication 526 says (see my 1st link below):

You can deduct unreimbursed out-of-pocket expenses, such as the cost of gas and oil, that are directly related to the use of your car in giving services to a charitable organization. You cannot deduct general repair and maintenance expenses, depreciation, registration fees, or the costs of tires or insurance.

Michael Plaks, EA, Houston TX

www.MichaelPlaks.com

If the nonprofit is a 501 (3) (c)...you can deduct most of your out of pocket expenses. Meaning what you actually pay..not the per diem rates. Oh and the IRS will have the notion that you would have had to eat anyway so probably no deductions for meals either.

Also you can not claim anything for your time (regardless of the hourly rate you charge). However with planning, and crossing all the T's and dotting all of the I's it is still possible.

Very questionable...but possible. Would I do it or advise it...No.

And, you would have to prove the amounts paid that were for the charity as compared to the visit with your parents.

The major problem I see is that you will be staying with your parents...and occasionally staying in a motel...that can viewed several ways. More than likely it will be viewed as a choice you made for personal reasons.

Hope this helps...all I do in the off season is represent people in tax audits.

Hope this helps!

I think you still need to file an IRS form, and since the fund value is lower than the guideline for distribution details, it would not much to worry. Yes, indeed, filing a return with IRS will give you a record and good standing, not only for tax purpose but also for bookkeeping purpose that later on you could answer to any concern question and avoid a lot of headache on the money matter.

You can deduct the actual expenses associated with the charity. You cannot deduct the expenses related to time with family. You can prorate them. Food is not deductible as you have to eat anyway.

you are combining two things which makes it harder to determine and prove to IRS

this appears to be a combined trip, some for the charity and some for personal

the actual time spent for the charity out of the total time spent would be the % to use

this is volunteer, you are not away from your regular job overnite doing your regular job