Have a client who has volunteered for years as ski patrol at a resort in another state. He receives no pay for this service, but performs all the duties of regularly-paid ski patrol employed by the resort, including rescue and transport of injured persons. (He has a medical background but I am not sure this is required.) Up until this year, he was covered under workman's comp, but that is being discontinued for volunteers. He gets to ski free (any time) along with any dependent children, plus he receives one lift ticket for the actual day of work for another person of his choice. All of the volunteers pretty much call their own schedules, and they go for training once per year by the National Ski Patrol (not the resort) for which they pay. They also pay for any lodging involved in the volunteering and/or training. They must buy certain equipment (i.e, radio, ski coat which identifies them as ski patrol). The question is: is there any kind of deduction for travel, lodging, expenses. It can't be classified as a job, since other than a lift ticket, there is no pay. Even if it were, it would be commuting to get there, IMO. If he were to claim the value of the free skiing, would that make a difference? I don't think it qualifies as charitable since a ski resort is not a tax-exempt org. Of course, there is always the "associate" who ALWAYS takes all these expenses every year and has never been called on it, so it must be okay, right? Opiniions, pls.
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Last edited by Burke; 02-02-2011, 02:27 PM. -
Thoughts
Could he be considered to be volunteering with the National Ski Patrol?
I think commuting is by definition to a job. I think if we have him volunteering with a charity or engaging in a hobby with hobby income then his mileage is a deduction subject of course to the hobby deduction rules. -
Travel expenses for charitable work requires that there be no, "no significant element of personal pleasure, recreation, or vacation in the travel." (TTB 4/17 column 2) I cannot imagine ski patrol qualifies.Comment
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To Erchess:
He is a member of NSP, and pays dues. Their website states they are non-profit, and although they do not mention their tax code qualification section, it states on their donations page that it is tax-deductible. (Donations, not dues.) It's kind of nebulous, since while he is a member of NSP, he does not actually "work" for them. He works for the ski resort, from which he receives certain benefits, and that is the entity through which he coordinates his activities. As a charitable donation of out-of-pocket expenses, IRS pub states no deduction if TP receives any kind of significant personal benefit. As a hobby, expenses are deductible only to the extent of income, so no tax benefit there. Not a job, so no loss there. I might be persuaded to go the charitable contribution route if he didn't receive any benefit. They do good humanitarian work, so it seems reasonable to allow on the face of it. I am not sure at all how it would fly in an audit.Comment
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As a former volunteer patroller..
the runs you get are far less than you would expect. Aside from the occasional injuries, it's pulling and resetting barriers, giving directions, locating lost kids, retrieving gear, crowd control at the lift, and diplomatic behavior modification. If you pull an accident, you can figure 2 hours gone with hill transport, finding the parents or friends, treatment, reporting, and handover for transport to medical services. Then there were the calls to the tubing/ sledding area up the road for tree collisions. Most days I was lucky to get a couple of runs in with my wife, maybe lunch.
Some days you get the privilege of doing this while the weather/snow/people are all lousy. (good prep for tax work I guess)
Long and short, if you want to ski, buy a ticket.
Since I became a CPA, no more skiing. That's one thing I miss.
By the way, the charity is the National Ski Patrol System Inc. and the skiing public in general. And some patrols are nordic not alpine skiing.
For a number of years the trend has been toward paid patrol partly because of the difficulty in finding enough volunteers willing to do the above for a large ski area every day of the week.Comment
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That is my dilemma. Of course, the TP can state he only goes up to perform ski patrol duties, but I have the feeling it is more than that. These are usually weekend trips -- or 3-dayers -- and the kids can go, plus a friend can go and ski free every day he works, and there is the actual personal enjoyment of skiing. It is not like he mans the lifts. It could be that there are no ski patrol calls on that day. And he does not teach skiing, but he may fill in for the regular ski patrol on the slopes if they are engaged in lessons. I suppose it boils down to intent. But does IRS really care about that?Originally posted by snowshine View PostComment
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Thanks for the personal insights. As a skier, I love the "diplomatic behavior modication." I've seen it, trust me. What is your opinion on a charitable deduction for out-of-pocket assuming there is no personal benefit for that trip? Or, take the expenses and deduct value of lift tickets?Originally posted by outwest View PostLast edited by Burke; 02-02-2011, 03:47 PM.Comment
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My opinion..
Out of pocket charitable expenses for the special uniform, first aid fanny pack/ vest, expenses for training courses, meetings, and testing.
I do not see as a donation the ski equipment cost, goggles, gloves etc. (I've discussed the extra wear and tear caused by the places you have to go as justifying the deduction. I don't agree with that.)
Travel and charitable mileage can go either way in my opinion. If I drive up myself or with other patrol members, I think the regular charitable rate applies. If rest of the family rides along, I don't. I have no guidance on that.
On the ski tickets: the ticket for the patroller, no income or effect. It simply provides access to the hill to provide the service. You won't get on the lift without it. On the other hand, I believe the family passes would reduce the other charitable deductions under the ordinary FMV of benefits received rules. I don't think the excess, if any, would be taxable as I see this is similar to "no additional cost services" provided by the ski area to other employees.
FWIWComment
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One other FYI..
As to the charitable status:
"Thanks to this distinguished legacy of altruistic service, the National Ski Patrol was recognized with a federal charter by the United States Congress in 1980. This is a coveted endorsement that only a few other American institutions have earned, including the American Red Cross, the YMCA, and the Boy Scouts. The federal charter stipulates that the NSP shall continue to promote safety and health in skiing and other outdoor winter recreational activities. Accordingly, the NSP annually reports directly to Congress."Comment
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Thanks for the comments. Makes me feel a lot better about considering this deduction with some qualifications. (Even the IRS concedes its okay to enjoy it.) As for you, I hope you reconsider skiing again. I used to always schedule a week to go out west, my clients still ask me what week I am going to go, even though I haven't been there for a while. My problem is getting partners. Everybody has given it up. I still hit some local places. As you know, most can't compare with the Rockies.Comment
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Don't feel to sorry..
what I've given up in skiing I make up in the summer by whitewater boating. I've logged trips down all the major Idaho rivers and the Grand Canyon.
Though I was tempted to ski over New Years while spending a couple of nights at a friends house within walking distance (with ski boots on) of the warm springs lifts at Sun Valley. 3000 vertical feet under one quad lift ride .... Course the high temp was about 5 degrees that day. Maybe not. We're spoiled.
Where are you going this winter?Comment
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