Volunteering itemized deduction

[AZ-Tax]

I thought I read somewhere if the TP keeps a log of his/her actual exps (gas, oil, oil changes, repairs, ins, taxes, depreciation), the TP is allowed to deduct actual exps opposed to taking the standard 14cts/mile. Am I correct.

[WhiteOleander]

The t/p would have to show the mileage involved so that he/she is only deducting the percentage of those expenses related to the volunteer activity. That means they have to have a mileage log.

[Gene V]

I thought I read somewhere if the TP keeps a log of his/her actual exps (gas, oil, oil changes, repairs, ins, taxes, depreciation), the TP is allowed to deduct actual exps opposed to taking the standard 14cts/mile. Am I correct.

Did you read TTB 4-17,

Auto expenses
. Deductible out-of-pocket expenses include the
cost of using the taxpayer’s auto in providing services for a charitable
organization. Deduct the actual cost of gas and oil, or the
standard mileage rate. Add parking and tolls to amount claimed
for either standard mileage rate or actual expenses.

[AZ-Tax]

Yes I read TTB 4-17...

So your client tells you they verbally volunteered and drove 5000 of volunteer related miles but when asking your client if they kept a log, they reply no. So do you enter 5000 miles at the standard rate of 14cts or do not enter anthing since the client never kept a log?

[DonPriebe]

I thought I read somewhere if the TP keeps a log of his/her actual exps (gas, oil, oil changes, repairs, ins, taxes, depreciation), the TP is allowed to deduct actual exps opposed to taking the standard 14cts/mile. Am I correct.

Not depreciation. Same as you cannot deduct the depreciation on the computer you use to keep the financial records of your favorite 501(c)(3) charity.

[gkaiseril]

So your client tells you they verbally volunteered and drove 5000 of volunteer related miles but when asking your client if they kept a log, they reply no. So do you enter 5000 miles at the standard rate of 14cts or do not enter anything since the client never kept a log?

Well the amount is $700.00 and the chance of an audit on that amount is?.

So if you have copies of meeting notices or a personal calendar with the activities you attended and a good estimate of the mileage that should satisfy an IRS auditor. And you might be able to get witness statements from other attendees that you were actually at those events. You could also ask your client to start to keep a log of the charitable mileage and other out of pocket expenses he or she incurs.

Keeping the mileage charitable cost, gas and oil, and comparing that to the 14 cents for mile and if using the 14 cents is better, you will have saved the client some money. But if lump the other stuff in their, you lose this opportunity.

[DaveO]

I had some clients that went to New Orleans to help rehab houses after Katrina. We used the fuel and motel receipts plus the rental receipts for the equipment they rented and moved in a trailer. That came to a lot more than $.14/mile.

[gkaiseril]

I would not net all the expenses as a single entry. The gas and oil for transportation or the mileage rate. All the others would not be included in the mileage. I would even list them in categories like "Housing Cost", "Equipment Rental", "Board at 50%", etc. This might save having to respond to the IRS about a large amount and show that one is following all of their rules and limitations. And by compairing the correct calculation of milage cost might save your client some tax since there could have been a larger milage deduction than the actual milage cost.

[FEDUKE404]

I thought this was an automobile use question

I had some clients that went to New Orleans to help rehab houses after Katrina. We used the fuel and motel receipts plus the rental receipts for the equipment they rented and moved in a trailer. That came to a lot more than $.14/mile.

Why would you include motel receipts and equipment rental receipts in calculations related to the use of a personal automobile for charitable purposes????

Assuming those expenses are valid, they would have absolutely nothing to do with the cost of operating an automobile.

FE

[luke]

charitable organization?

[QUOTE=DaveO;91222]I had some clients that went to New Orleans to help rehab houses after Katrina. We used the fuel and motel receipts plus the rental receipts for the equipment they rented and moved in a trailer. That came to a lot more than $.14/mile

Were they "rehabbing" houses as part of a charitable organization or just to help rehab houses in need? I disallowed a charitable contribution for a client who rented a truck and bought supplies that he drove to new orleans after Katrina?

[gkaiseril]

Hopefully this individual did this through an IRS recognized charity and received a letter of appreciation or acknowledgment for this service.

If that requirement is not meet, there should be no deduction allowed.

Sort of like putting a gold coin into the Salvation Army kettle. An extremely generous action, but no relief form the IRS.

[DaveO]

I didn't include the motel and equipment rental in the use of automobile cost. They were working on behalf of their church group. I treated the out of pocket costs as a donation to their church.

[DaveO]

Sorry, I should have made it clear it was through a church group. They rehabbed several houses over the course of a couple of years. Just doing it solo would not have produced a benefit.