volunteer chaperone over-night trip - expenses/mileage?

[Janitor Bob]

Client volunteered to drive/chaperone, help run a 3-day out-of-state trip for her daughter's girl scout troop.

Mileage to and from camp: 752

Meals for client only (not her daughter): $130.00

Mileage at .14/ mile....but what about her cost for meals...deductible? If so...where exactly in ATX would it be reported?

[Jack from Ohio]

Mileage only. The other items mentioned are not donations, therefore, no place to put them.

[MAMalody]

Unreimbursed travel expenses incurred in donating services constitute a deductible contribution. Reg. 1.170A-1(g) For ATX, I would simply list it with the cash contributions.

[JohnH]

Unreimbursed travel expenses incurred in donating services constitute a deductible contribution. Reg. 1.170A-1(g) For ATX, I would simply list it with the cash contributions.

I agree with Mike. There are often many deductible out-of-pocket expenses which volunteers incur in situations such as this. They are considered cash contributions to the qualified charitable organization - no different than a check written to the organization. The volunteer should, of course, keep good records. If you ask her some more questions, you may find that she incurred other deductible expenses in the trip that she isn't thinking to tell you about. Did she pay her own lodging, for example?

Here is a good summary of the tax implications for certain expenses incurred by scouting leaders. It is about as comprehensive as any you will find, and it is factually accurate insofar as the tax laws are concerned . Might be a good resource to send or print out and give to anyone serving as an adult leader for any youth-related tax deductible organization.

http://www.scoutingweb.com/scoutingweb/subpages/TaxesGirlScouts.htm

[ILLMAS]

JB, just wondering how much benefit is your client getting from deducting the mileage? $2, $5 $0

[Jack from Ohio]

I agree with Mike. There are often many deductible out-of-pocket expenses which volunteers incur in situations such as this. They are considered cash contributions to the qualified charitable organization - no different than a check written to the organization. The volunteer should, of course, keep good records. If you ask her some more questions, you may find that she incurred other deductible expenses in the trip that she isn't thinking to tell you about. Did she pay her own lodging, for example?

Here is a good summary of the tax implications for certain expenses incurred by scouting leaders. It is about as comprehensive as any you will find, and it is factually accurate insofar as the tax laws are concerned . Might be a good resource to send or print out and give to anyone serving as an adult leader for any youth-related tax deductible organization.

http://www.scoutingweb.com/scoutingweb/subpages/TaxesGirlScouts.htm

How would the taxpayer document the "cash equivelant" donations to the organization? Will the Scouts issue her a statement for her contributions with values established? How do scouts get to circumvent all the other charitable contribution regulations?

[Janitor Bob]

This client will receive, as you suggest, only a few dollars actual tax benefit. However, she is one of those clients that thinks she knows tax law and combs through her return looking for every little deduction that she "suggested" on her 8 page list. She plays the system....starts a new "business" every year and spends countless hours coming up with utilities and other "business" deductions. So every year I need to explain to her why her "suggestions" are not deductible or if deductible have little or no benefit....and why her newest venture is likely a hobby and not a business.

However, this annual explanation is easier than listening to her accuse me of missing something....So if her 750 miles is decuctible, I want her to be able to see that it is included in the return.

I hate this client, but I can't fire her....because she's my sister.

[Jack from Ohio]

This client will receive, as you suggest, only a few dollars actual tax benefit. However, she is one of those clients that thinks she knows tax law and combs through her return looking for every little deduction that she "suggested" on her 8 page list. She plays the system....starts a new "business" every year and spends countless hours coming up with utilities and other "business" deductions. So every year I need to explain to her why her "suggestions" are not deductible or if deductible have little or no benefit....and why her newest venture is likely a hobby and not a business.

However, this annual explanation is easier than listening to her accuse me of missing something....So if her 750 miles is decuctible, I want her to be able to see that it is included in the return.

I hate this client, but I can't fire her....because she's my sister.

See if she wants to become your assistant.

[ILLMAS]

JB please tack on $$ to her bill please

[Mr. Pencil]

The volunteer should, of course, keep good records.

Thanks for a very good review, JohnH. I appreciate the way it covers records, because substantiation of volunteer expenses is comparable to what's required for cash. In particular note that travel must be as an official adult leader, which means the adult must be registered and trained. If the client does not claim dues and uniform costs, I will not allow travel costs.

An interesting thing is that the IRS itself uses scouting uniforms as an example of deductible expenses. But the scout unit as such (at least for Boy Scouts) is not a 501(c )(3) organization, and in fact it is "owned" by the sponsoring church or other community organization rather than national BSA. I accept substantiation from the church or the local Scout council, but not from the Scoutmaster.

For donations of something valuable like land or boats, I recommend the donor give it to the sponsor, or sell the asset and donate cash directly to the local unit or council if that's who they want to benefit. If they want the troop to use the land or boat instead of having it sold off, it must go to the church or to a separately formed corporation to protect the asset from the national people. That's just reality.

[JohnH]

How would the taxpayer document the "cash equivelant" donations to the organization? Will the Scouts issue her a statement for her contributions with values established? How do scouts get to circumvent all the other charitable contribution regulations?

See page 5 of Publication 526 for your answers. Mr Pencil has also provided very good additional information on this matter. Not every charitable contribution requires a receipt from the organization involved (regardless of whether it is Scounts, a church, or other legitimate charity) . A canceled check or other suitable documentation is often sufficient, especially if the $250 threshhold is not exceeded. Are you unreasonably denying this type of deduction for your clients when they qualify for it, simply because you misunderstand the rules?

[taxxcpa]

The expense for meals would need to be 50% of the cost.

[JohnH]

The expense for meals would need to be 50% of the cost.

The 50% reduction for business meals does not apply to volunteer meals.

This is from Pub 526, page 6:

"Deductible travel expenses.

These in­clude:

Air, rail, and bus transportation,

Out­of­pocket expenses for your car,

Taxi fares or other costs of transportation

between the airport or station and your ho­tel,

Lodging costs, and the cost of meals.

Because these travel expenses are not busi­ness­ related, they are not subject to the same limits as business related expenses. For infor­ mation on business travel expenses, see Travelin Publication 463, "

[MAMalody]

<<< In particular note that travel must be as an official adult leader, which means the adult must be registered and trained.>>>

There is not a limitation to official leades only. Going by the article, it specifically states that non-official leaders (also known as parents) can avail themselves of the same deduction as long as that individual, if questioned, can demonstrate that their participation was not just to ensure that program was available to their child. If questioned you would want to be able to show that your service is of a benefit to other youth or the group as a whole and not just your child.