Charitable run?

[joanmcq]

Ok, now I know I'm fried. Client participated in a rub event for charity. The cost to participate was $35, and she also gave a $5 additional donation. She got a t-shirt for participating. Is the cost of the event a charitable deduction? She's asking this question directly, so I thought I'd pass it on. So tired I can't keep my eyes open.

[Dan]

I would say no!

On any contribution statement you should find these words "The above donations were received by the name of the charity. There were no goods or services received in exchange for these donations, other than intangible, religious benefits"

[joanmcq]

Intangible religious benefits is only for churches. Remove value of t-shirt? What's the value of a fun run?

[Terry D EA]

I see the 35.00 entry fee as the donation and so is the additional $5. The T-Shirt is just a gift I think

[Cathy]

The t-shirt is definitely something of value that needs to be subtracted from her total donation of $40. Did she donate the extra $5 to cover the cost of the t-shirt? $5 sounds about right for a bulk purchase of t-shirts. She can always contact the organization for the cost of her t-shirt. Sounds picky, however, we don't make the rules and regs...just report charitable contributions according to them.

[MAMalody]

Question 1. What the charity the run was for a qualified 501©(3)? If not, not deduction.

If yes, reduce the $40 by the value of the shirt and there is your deduction.

[joanmcq]

Yes, it was the Run to Feed the Hungry. Thanks, $5 for the t-shirt sounds about right.

[Guest Taxed]

At this late stage do you really want to argue over $35 Charitable donation! What is the penalty if IRS disallows $35??

I would deduct $35 if the check was written to a 501© org. If the cost of the T shirt is say $2 retail, I would then deduct $38 (40 -2)

[ILLMAS]

Really $35, I agree with Taxed, and I hate it when TP's try to itemize every little penny

[Lion EA]

Don't bulk items with the name or other advertising given out to large numbers fall under deminimus?

[KEYWEST_RICKS]

I am gonna take another lane on this... for your $35 you got probably a "tech shirt" which cost more than $5. (if you stick a "swoosh" on it people stores have the nerve to ask $40 to $50 bucks for it) Gatorade stations manned by people handing you your cup. Security to keep the streets clear that you run on. Probably a finisher medal at the end....also at the end i bet they had bananas, water, bagels etc etc as recovery snacks

I vote that the taxpayer got what they paid for and no charitable contribution except for the additional $5 she chucked in.

sorry but i want to punch people who ask a bout a donation for the girl scout cookies they buy.....

[joanmcq]

Yeah, I wanna punch them too. She even asked if the $2 of postage it cost to send her hair donation was deductible!

[jklcpa]

Yeah, I wanna punch them too. She even asked if the $2 of postage it cost to send her hair donation was deductible!

Don't forget the mileage for her to drive to the post office to mail the package. Ha ha!

[jainen]

>>She even asked if the $2 of postage it cost to send her hair donation was deductible!<<

Since transaction costs are added to basis of capital assets being sold, I think it is reasonable to ask one's tax preparer whether the same rule applies for donations. What did you answer?

[Cathy]

sorry but i want to punch people who ask a bout a donation for the girl scout cookies they buy.....

Thanks!!! I forgot about the "thin mints" I hid from myself in my freezer......I'll be back in a few minutes! :)

[joanmcq]

>>She even asked if the $2 of postage it cost to send her hair donation was deductible!<< Since transaction costs are added to basis of capital assets being sold, I think it is reasonable to ask one's tax preparer whether the same rule applies for donations. What did you answer?

Well, she also asked if she could estimate and deduct the shampoo & other expenses of haircare for the two years it took to grow it, and I just answered "no".

[kcjenkins]

[jklcpa]

^ Until this year, it was a bunny hop for me.