Replies

1. 
   bobl | Jan 28, 2003 02:07am | #1

   http://www.irs.gov/pub/irs-pdf/p526.pdf this says you can't deduct your time volenteered.

   are you donating time or materials or both?

   bobl          Volo Non Voleo      Joe's BT Forum cheat sheet

   
   

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   Edited 1/27/2003 6:08:26 PM ET by bobl

   
   

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   Edited 1/27/2003 6:09:21 PM ET by bobl

2. 
   RW | Jan 28, 2003 02:41am | #2

   Worked on a church before. About a month deep into a church renovation now (heck yes I'm charging!) If you don't charge for labor, you can't claim that you lost anything or expense it out - you just have nothing. You volunteered, and somebody at the IRS might think "gee, what a guy" and move on, but that's it.

   As to the materials, and I'm assuming this is pretty standard around the country, make sure you have their tax exempt number when you go get the materials. You fill out the form, listing yourself as the contractor for the project, and you waive the tax. This only applies to materials that will be left on site or used in the construction, not something you can take with you later. Drywall, framing, sawzall blades, no tax. Sawzall itself, taxed. Plan on that being audited at some point down the road.

   " Clothes make the man. Naked people have litte or no influence in society" - Mark Twain

3. 
   toolnut | Jan 28, 2003 08:36am | #3

   Keep track of your milage to and from the camp.   If you get pegged as volunteering you can at least deduct your milage at some IRS designated rate.  It is different than the the milage reimbursment rate for business.   Check with a CPA,  the Tax implications for you could be significiant if done right.

4. 
   junkhound | Jan 28, 2003 09:27am | #4

   "mileage to and from "

   That is about all you will get from a (an honest, by IRS rules) tax advantage.

   Few years back, with mostly donated materials salvaged by personal labor (you can't deduct market value, only what it cost you)  on a job for my own church (independently bid by an outside GC at over $300K!- 2003 $$),  did it for < $12K including actual out of pocket cost of salvaged materials from  personal stockpiles, was only able to deduct about $350 in mileage, and that was even pushing it.

   Thanks for 'helping out', don't expect Uncle Sam to congratulate you via taxes though. <G>

   PS: Met my wife at Central Illinois Lutheran Camp Association (CILCA).  First time I ever saw her I was 18 YO on a roof putting a cedar shingle roof on a camp selter - guess she should have known what she was marrying . (another <G>)

5. 
   valleyboy | Jan 28, 2003 11:56am | #5

   Simple solution:  Invoice the church for everything, they pay the invoice, and then you make a charitable donation for the same amount as the invoice.  I am assuming that charitable donations are deductible where you are.

   End result, church breaks even; you get the tax break on everything.

1. 
   CloudHidden | Jan 28, 2003 06:14pm | #7

   Kids, don't try this at home...

   Here's the guidelines, and they'd likely cover this "quid pro quo" situation. And that's separate from my thoughts on it being a suggestion that Jon get's the church involved in a tax-cheat scam.

   http://www.tgci.com/publications/98winter/irsrules98.htm

   http://www.independentsector.org/programs/gr/Tax_Time_Tips.html

2. 
   BillHartmann | Jan 28, 2003 06:32pm | #8

   "

   From:

   DOITMYSELF

   "Simple solution: Invoice the church for everything, they pay the invoice, and then you make a charitable donation for the same amount as the invoice. I am assuming that charitable donations are deductible where you are."

   "End result, church breaks even; you get the tax break on everything."

   No that is the EXPENSIVE way of doing it.

   The income from the church get reported on Sch C which adds to your net profit. You have to pay SE taxes on that.

   Then you can deduct your contribution of sch A. So income tax wise it is a wash, but you end of paying SE taxes. And of course that also requires you to already have enough other deductions that you are over the standard deduction. If not you don't get 100% of the charitable contribution.

6. 
   bill_1010 | Jan 28, 2003 05:30pm | #6

   Consult a qualified accountant.  People here always say get an electrictian... plumber or engineer.  Its safe to assume for tax purposes find an accountant.

7. 
   jonblakemore | Jan 30, 2003 01:39am | #9

   Thanks for the info.  I will still do the job, as the break was not the deciding factor, rather the fact that it needs to be done and I appreciate what they do. 

   Jon

   Jon Blakemore