Ok, this is a new one for me. Couple is involved in a couple groups that are 501c3 organizations. They do civil war reenactments or some other silly thing like that. They have over 6K miles to demos, directors meetings, etc. Is this all deductible as charity?
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yes but the mileage does seem excessive. Do they have a mileage log?Believe nothing you have not personally researched and verified. -
I assume you've confirmed that it is truly a 501(c)(3) organization? (using IRS lookup tool)Originally posted by kathyc2 View Post
Per TheTaxBook, "The cost of using the taxpayer’s auto in providing services for a charitable organization is deductible." Were the miles incurred in "providing services"? Participating in a performance (re-enactment) does not seem to me to be providing a service. On the other hand, if the performance is considered an educational activity, then doing actual volunteer WORK to set up the performance, advertise it, handle housekeeping, etc might be considered providing a service. So maybe those director's meetings would count. Also note that "If a taxpayer receives a benefit in exchange for a charitable contribution, the deduction is reduced by the value of the benefit received." [TTB]
I hope in all their re-enactments they reflect the historical facts of which side won! :-)"You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe HowardComment
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There is a list provided by the IRS that can tell you whether the organization is a 501(c)3. Do you know that it is or did the clients tell you that? It could be a 501(c)4. Tax-exempt but not a qualified charity for IRS purposes.Originally posted by kathyc2 View PostComment
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Thank you.Comment
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That's a pretty incomplete and misleading document, starting with how it implies that all these issues related specifically to re-enactors are discussed in an IRS publication. It also does not mention the requirement that expenses be incurred in providing services, and not involve a significant element of pleasure, recreation, or vacation.Originally posted by JSLATER View Post
I suppose the battle (pun intended) was already lost when these social clubs managed to get themselves classified as 501(c)(3) orgs.
Select items that due diligence would require to be followed up:
If any of your unreimbursed out-of-pocket expenses, considered separately, are $250 or more (for example, you pay $250 for an airline ticket to attend a convention of a qualified organization as a chosen representative), you must get an acknowledgment from the qualified organization that contains:
a. A description of the services you provided,
b. A statement of whether or not the organization provided you any goods or services to reimburse you for the expenses you incurred,
c. A description and a good faith estimate of the value of any goods or services (other than intangible religious benefits) provided to reimburse you, and
d. A statement that the only benefit you received was an intangible religious benefit, if that was the case. The acknowledgment doesn't need to describe or estimate the value of an intangible religious benefit (defined earlier under Acknowledgment).
Travel. Generally, you can claim a charitable contribution deduction for travel expenses necessarily incurred while you are away from home performing services for a charitable organization only if there is no significant element of personal pleasure, recreation, or vacation in the travel."You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe HowardComment
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