Donation to church

[leerobea]

My client donated $8,000 in the form of materials and labor to their church. The donation was for improvements to the church and their business bought the materials and paid their employees to complete the improvements.
Is it deductible?

[Lion]

Already Deducted

The business already deducted the cost of the materials and payroll. No double dipping.

[ChEAr$]

The business already deducted the cost of the materials and payroll. No double dipping.

Still, those costs are not cost of doing business and should have been segregated and reclassified as a charitable contribution. In the case of schedule c not shown on that form but on schedule a.
In the case of other businesses a flow through contribution on schedule K1.

[S T]

Jut had one

Contractor - some years on wages - some years as Sched C - Actually a construction Manager as in "overseeing job" or a sub-contractor.

They had a deduction of doors and windows for Habitat to Humanity in 2010 of which there is a letter acknowledging $2,500 FMV.

In asking the question, they are sure that they purchased for a job, but was never used and did not include in their material/supply cost. In looking at the last 3 years of their returns that I prepared, the t/p has been either an employee or a Sched C with no material cost deduction.
So we took the Charitable Contribution for 2010.
Guess you will have to look at accounting or ask the question of the taxpayer - if they included in the accounting records, or how they recorded iin their accounting records.

Just like the Biz Van one of my clients just donated that had a -0- basis - and noted that it was an $800 charitable contribution. I think not!

Facts and Circumstances and Records

Sandy