Hair donation

[Margaret CPA in OH]

Sigh... Client wants to deduct the cost ($53) of the haircut she had to donate her hair to Pantene Beautiful Lengths.  I say no because she received value of, well, $53 and her hair, like a blood donation is not deductible.  Do I hear an 'amen' or an 'au contraire?'

[JohnH]

Well, $53 is barely over the amount needed to Niobe the client from one tax calculation block to the next, which means the largest tax consequence would barely be two figures. However, I suppose  there is a principle involved here.

Maybe it's justifiable in the same manner as charitable mileage or other out of pocket expenses incurred in making a legitimate donation.  If I drive my car to goodwill to drop off my valuable cast-offs, did I derive a benefit from the mileage because I didn't have to walk there?

[Margaret CPA in OH]

My point of view is that the client derived a benefit from the haircut, that wasn't entirely altruistic.  I could also be a bit jaded by the fact that there was $0 cash donated but $770 in, well, used clothing and household - with AGI of $200,000+  I know, unfair value judgment.  With taxable income of about $175,000, there is no danger of being pushed into the 28% bracket.  Then again, it IS worth $13!

[Lee B]

Well,volunteers are allowed to deduct out of pocket expenses incurred in providing charitable service.

If you squint your eyes really hard, will this slide thru the keyhole ?

[Jack from Ohio]