How To

How to Take Tax Deductions for Charitable Contributions Where Property or Services Are Received in Return

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By eHow Contributing Writer
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No, you cannot go to a charity ball for $500 a couple, spend $1,000 more on an auction for a weekend rental and write the whole $1,500 off on your taxes. The way the Internal Revenue Service views it, you received a benefit and can deduct only the amount of your contribution that is more than the value of the benefit you received.

Difficulty: Moderately Easy
Instructions

Things You'll Need:

  • IRS Forms
  • Cancelled Checks
  • Ledger Books
  • Calculators
  • File Cabinets
  • File Folders
  • Tax Preparation Software
  • Calculators
  • Ledger books
  1. Step 1

    Estimate the fair market value of the goods or services you received, if this value has not already been established.

  2. Step 2

    Subtract this amount from the amount you paid for the goods or services.

  3. Step 3

    Enter the result as your charitable contribution on your itemized tax return.

Tips & Warnings
  • Tickets to many charity functions list the amount that can be deducted on the ticket or invitation.
  • For the excess amount of your charitable contribution to qualify for deduction, it must be motivated by a desire to make a contribution to the organization in excess of the value of the property or services you received.
  • The IRS has numerous provisions for special cases, including those where the benefit received is only a token item such as a button or pin. Check IRS Publication 526 for details.

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