Charitable mileage

[Janitor Bob]

Client is a "Big Sister" to a young child. I know this is a charitable organization, but here is my confusion. Can client deduct mileage for trips where she took the little sister to events such as baseball games?

Yes, it is charitable, but client received enjoyment from the trip so I hesitate to claim mileage for such trips?

Here is the text of the e-mail from Big Berothers/Big Sisters to my client:

It's that time of year again to begin calculating and filing your federal income tax. BBBSA is pleased to inform you that Bigs are entitled to the following tax deductions:

Deduct $.14 cents per mile incurred in picking up and driving the Little around.

You may also deduct the cost of meals, movie tickets, museum admissions, etc. which you spend for the Little. However, you cannot deduct the costs you incur for your own meals, tickets. etc.

While BBBSA encourages quality time rather than money spent on the Little to be most important in the relationship, we trust that you will find the above information welcome and useful.

....I thought you could not deduct donations to an individual...only to the charitable organization.

Any advise on this issue from all of you smart people is appreciated!

[bay]

In regards to the mileage deduction I would say "no" - Mileage is allowed for transportation, travel expenses incurred on behalf of a charitable organization "if there is no significant element of personal pleasure" If your client goes to a movie etc, personal pleasure.

In regards to the cost of the litle sisters meals I would say "no" - It has always been my understanding that a charitable deduction either monetary or non-monetary must always be paid directly to a non-profit that has the appropriate 501 status with the IRS.

When I donate directly to my local church I get a deduction, but if I invite my priest to an Indians Baseball Game the cost of the tickets, food, etc is not a charitable donation.

Good Luck

P.S.

I notice that you are in Sidney, have you used the "Ohio Cities" Module from ATX Yet?

thanks

[GeneInAlabama]

....I thought you could not deduct donations to an individual...only to the charitable organization.

Seems to me that the donation is to the organization rather than to the child. You are helping the organization provide a service for the child. I wouldn't have a problem deducting it.

Gene

[Janitor Bob]

In regards to the mileage deduction I would say "no" - Mileage is allowed for transportation, travel expenses incurred on behalf of a charitable organization "if there is no significant element of personal pleasure" If your client goes to a movie etc, personal pleasure.

In regards to the cost of the litle sisters meals I would say "no" - It has always been my understanding that a charitable deduction either monetary or non-monetary must always be paid directly to a non-profit that has the appropriate 501 status with the IRS.

When I donate directly to my local church I get a deduction, but if I invite my priest to an Indians Baseball Game the cost of the tickets, food, etc is not a charitable donation.

Good Luck

P.S.

I notice that you are in Sidney, have you used the "Ohio Cities" Module from ATX Yet?

thanks

It is tempting...As I spend a lot of time splitting income between multiple localities (Construction workers)...But Im did not purchase that mosule for two reasons:

1) I do not do enough quantity to warrant the high price tag

2) With the CCH-caused problems this year, I may not be back with ATX next year...assuming ATX even exists next year

[Kea]

I agree with Gene. I have a client who fosters dogs for a rescue organization. While she has temporary custody of the dogs, she pays the vet bills and vaccines, etc. She got all the 501©(3) info from the rescue group and we deduct these costs. These are costs that would otherwise be paid by the rescue group if they were not being fostered.

Sometimes she adopts the dogs herself. In these cases we do not deduct these costs.

[jainen]

>>costs that would otherwise be paid by the rescue group<<

I tend to think like bay and act like GeneInAlabama. Against my own judgment that it is a contribution to and for an individual, I put it on Schedule A. I do require a mileage log and receipts, but I don't review them and they don't meet the new documentation requirements for donations with a personal benefit or more than $250 anyway. The IRS is inconsistent on the issue. One of their own examples is a Boy Scout leader buying a uniform and going camping. That's not a donation to BSA, but to the local unit which isn't even registered as a 501©(3).

[RoyDaleOne]

Pub 526

Out-of-Pocket Expenses in Giving Services

Although you cannot deduct the value of your services given to a qualified organization, you may be able to deduct some amounts you pay in giving services to a qualified organization. The amounts must be:

Unreimbursed,

Directly connected with the services,

Expenses you had only because of the services you gave, and

Not personal, living, or family expenses.

Table 2 contains questions and answers that apply to some individuals who volunteer their services.

Underprivileged youths selected by charity. You can deduct reasonable unreimbursed out-of-pocket expenses you pay to allow underprivileged youths to attend athletic events, movies, or dinners. The youths must be selected by a charitable organization whose goal is to reduce juvenile delinquency. Your own similar expenses in accompanying the youths are not deductible.

Mileage is also mostly allowed.

[Janitor Bob]

Pub 526

Out-of-Pocket Expenses in Giving Services

Although you cannot deduct the value of your services given to a qualified organization, you may be able to deduct some amounts you pay in giving services to a qualified organization. The amounts must be:

Unreimbursed,

Directly connected with the services,

Expenses you had only because of the services you gave, and

Not personal, living, or family expenses.

Table 2 contains questions and answers that apply to some individuals who volunteer their services.

Underprivileged youths selected by charity. You can deduct reasonable unreimbursed out-of-pocket expenses you pay to allow underprivileged youths to attend athletic events, movies, or dinners. The youths must be selected by a charitable organization whose goal is to reduce juvenile delinquency. Your own similar expenses in accompanying the youths are not deductible.

Mileage is also mostly allowed.

THANKS...excatly the cite I was looking for!

[RoyDaleOne]

Mostly likely the local Boy Scouts is running under the BSA 501©3.

This is allowed sometimes. I would guess that is the case.

Note the BSA states this:

Tax Deductions GENERAL RULE.The general rule is that you will be allowed a charitable tax deduction for reimbursed,out-of-pocket expenses directly connected with the performance of services for the local council.If they are considered personal, living or family expenses, they will not be deductible. So, for example, the cost and upkeep of your BSA field uniforms will be tax deductible because they are necessary, and only appropriate, for BSA use. However, the cost and upkeep of a dress uniform -the blue blazer and gray slacks used at many regional and national BSA meetings - would not be deductible because of the potential for personal use of the items.TRAVEL EXPENSES.Deductible travel expenses include: air, rail and bus transportation; out-of-pocket car expenses; taxi and shuttle fares between hotel and airport or station; lodging costs; and reasonable meal costs. These expenses will only be deductible, though, if there is " no significant element of personal pleasure, recreation, or vacation" in the trip. Also, you cannot deduct travel,meals, lodging or other expenses for a spouse or children. CAR EXPENSES.If you use your car for the benefit of the local council, you can either deduct actual expenses (such as gas, parking, tolls, etc.), or use a standard mileage rate of 12 cents/mile for reimbursement. You cannot deduct any portion of general repair, maintenance, depreciation or insurance.USE OF PROPERTY/PERSONAL SERVICES.If you let the council use your property, such as space in a building, a boat, a car, or vacation home, you cannot deduct the rental value of that property. However, actual out-of-pocket operating expenses (such as fuel, utilities, etc..) will be deductible. You should beware that letting the council use a vacation home may push the property owner over the personal use ceiling, preventing the owner from taking rental losses on it for the year.

I doubt the BSA would be giving erroneous information.

[Gail in Virginia]

... That's not a donation to BSA, but to the local unit which isn't even registered as a 501©(3).

It is my understanding that donations to the local units of BSA are actually treated as donations to the chartering organization for tax deductibility purposes. Boy Scout troops are generally chartered by churches, which don't have to file a 990, so the contributions don't get reported on a 990. However, if a unit is sponsored by some other 501c3 organization, your contributions would be reportable on that organizations 990. This is how the local council explained it to me.