Spa Package Donation

[taxjungle]

A client is a hairdresser. She donated a "Spa Package" for services to a charity which they used at an auction for raise funds. The Receipt said the Spa Package FMV was $250.

I have questions: 1. Is this deductible as a donation? (I don't think so)
2. What would be the TPs cost (basis)? (if any)
3. Or would this be considered a Gift on Sch C? If so, at what value?

Would appreciate your thoughts very much.

[ChEAr$]

A client is a hairdresser. She donated a "Spa Package" for services to a charity which they used at an auction for raise funds. The Receipt said the Spa Package FMV was $250.

I have questions: 1. Is this deductible as a donation? (I don't think so)
2. What would be the TPs cost (basis)? (if any)
3. Or would this be considered a Gift on Sch C? If so, at what value?

Would appreciate your thoughts very much.

1. nope
2. zero
3. nope

Any "cost" will be included in respective categories on the schedule c, e.g. supplies, labor.... etc

[JG EA]

We've had this discussion in the past. You could pull out the cost (withdrawn for personal use) and then use the cost as a deduction. In fact that is what should probably be done since these materials shouldn't reduce self employment tax.

[ChEAr$]

We've had this discussion in the past. You could pull out the cost (withdrawn for personal use) and then use the cost as a deduction. In fact that is what should probably be done since these materials shouldn't reduce self employment tax.

Technically correct, however, consider also pulling out these pure and direct costs and reclassifying as advertising.
after all, that's really the reason for these 'donations'.

[taxjungle]

Spa Package

Thank you all.