You can generally deduct the full amount of the donation as long as it is to a qualified nonprofit. Some examples of qualified nonprofits are churches, governments, hospitals, the Salvation Army, United Way, Boy Scouts of America, and the American Red Cross. Some examples of nonqualified nonprofits are sports clubs, labor unions, tuition, chambers of commerce, homeowner’s associations, and political groups.
In order to take the charity deduction, you can donate money or property. The property can be personal property or real estate.
If you contribute personal property, you can take a deduction for the fair market value of the item at the time it was donated. It is also important to receive a statement from the charity listing the items that you donated, their value, and the date that they were donated.
However, no matter how much you wish you could, no one can deduct the value of their time or services. For example, if you accept a pro bono nonprofit case and you have 40 hours in the case and you bill $200 per hour, you are able to deduct none of it. If you are having tax issues we can help you by reaching us at Hoorfarlaw.com or 816-524-4949.