Charity expenses

[jimenright]

I have a client who purchases books to use in teaching classes for a charity, however he retained possession of the books. He thinks he should get a deduction for the books as a charitable expense. I say no deduction unless he actually gives the books to the charity.

What do you think?

[mactoolsix]

The IRS says:

If your contribution entitles you to merchandise, goods, or services, . . . . . .. . you can deduct only the amount that exceeds the fair market value of the benefit received.

I think he has received some goods. If they are books the students use again and again, and the books have become property of the charity, then I'd go for that.

Mike

[jimenright]

not contributed

The books have not actually been turned over to the charity. My client retained possession of them. He thinks he should get a deduction for charitable expense. I don't think that he can unless he turns the books over to the charity.

The quote you give is for something like a ticket for a charitable event dinner where the dinner itself is not deductible, but the additional cost is

[BP.]

purchases books to use in teaching classes for a charity

May qualify as out-of-pocket expense in doing volunteer work for a charitable organization. TTB p. 4-17 or Pub 17 p. 163 list the qualifications.
(Cost of uniforms is given as an example of such an expense; they are retained by the volunteer.)

I'd probably consider such a treatment of this expense.

[Lion]

Does he get any personal use out of the books, his own education or enlightenment or enjoyment, read to his own kids, teach a similar course for pay, resell the books, etc.? What is the reason he did not turn the books over to the charity?

A uniform (candy striper) isn't used as street wear. Books might have personal use.

[FEDUKE404]

Seeing through the haze

This is one of those areas that can both be open to discussion and to abuse.

IF the guy buys a book or two that specifically aids him in teaching a course, i.e. a business expense (or in this case a charity situation), I would lean toward giving it to him. Heck, I'd likely even let him keep the books under such restrictive circumstances.

OTOH, if he is just getting creative by buying books for his personal library that "help him" in his general pursuit of knowledge, then that is a different story.

Years ago I had a belligerent college prof who was of the opinion that just about anything that was printed could somehow be a deductible educational expense to keep him informed and/or his mind sharp "as required by his academic status." I jokingly referred to him as the "Amway Professor of (a nearby ivy-covered walls place)."

FE

[taxea]

I agree with bp...this is not a donation it is volunteer expense.

[Bonnie]

I have used things like this as volunteer expenses also. Taxpayer didn't abuse it but did buy a few materials

[MAMalody]

I think BP hit it on the ahead. I would allow the deduction based upon the facts presented.