massage donation

[gman]

A person donates her time and provides massages at a Cancer Society fund raiser.
She wants to write of her lost income and says everyone in her business does it. She said it is a lost wage deduction and that the individuals she massages will sign a receipt for the amount she tells therm ???????????? Has anyone done this..

cash basis taxpayer.

Do you have any tax site or reg that might explain this non deductible item?

[Chief]

No way Jose

I would not be a part of this scheme.

[DaveO]

This is all too common a request

I usually tell them that I'm often asked to join a non-profit or other organization in the hopes that I will become the free bookkeeper or preparer of the 990. I explain that the value of my time donated is not a deduction just as the donation of their time is not.

[jimmcg]

Only out of pocket expenditures for the "massage therapy" would be deductable, not the value of labor donated. Wish I had a dollar everytime I was told "but it must be correct if everone else does it."

[Jiggers]

Donated services

I tell them that I will deduct the amount as a donation on Schedule A and pick up the income as SE income on Schedule C.

Then I point out that they can't itemize and will have to use the standard deduction.

[Luis Mopeo]

Do you have any tax site or reg that might explain this non deductible item?

Pub 17, Charitable Contributions chart:

..."Not Deductible...The Value of Your Time or Services..."

She'll get folks to sign a receipt for the value of the massage? The law of unintended consequences. The recipient must pay tax on that value. She still doesn't get any deduction.

Otherwise you have conspiracy to commit tax fraud. Maybe you could mention that in telling her you won't be part of it.

My response to clients who say "So-and-so got away with it" is "You can put whatever you want on a tax return. That doesn't make it legal."

[ChEAr$]

plus

I tell them that I will deduct the amount as a donation on Schedule A and pick up the income as SE income on Schedule C.

Then I point out that they can't itemize and will have to use the standard deduction.

SE tax will or might be part of the added taxes.

[Black Bart]

A tricky situation

Of course they can't deduct it, but explaining to somebody that their work's worth absolutely nothin' is a hard row to hoe. I've tried, unsuccessfully, and there's not much point in trying to argue them down 'cause they know people who do it and get by with it. I just tell 'em IRS won't allow it, that their pals may have to eat it later, and let it go at that.

My dad used to write off $10K "machine hire" every year for an old farmer until the dawn of 1099 forms at which time, asked for a name and SSN, the old boy said "That's me. I'd have to pay that for a combine operator, so I do the work myself and I'm worth as much as anybody you can get." All parties were flabbergasted; simply astonished at the other's nonsensical reasoning.

Say Luis -- you better save yourself some speechifyin' space. If you holler "conspiracy to commit tax fraud" about such minor stuff, you'll have to threaten 'em with capital punishment if sump'n sure-enough serious comes up.

[Luis Mopeo]

Say Luis -- you better save yourself some speechifyin' space. If you holler "conspiracy to commit tax fraud" about such minor stuff, you'll have to threaten 'em with capital punishment if sump'n sure-enough serious comes up.

Yeah, you're probably right. That was blurted as part of the many responses to "What's wrong with this picture." Getting somebody to sign a receipt doesn't make a non-expense deductible.