Discussion:Charitable Contributions - Services
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Discussion Forum Index --> Tax Questions --> Charitable Contributions - Services
| 12 April 2007 | |
| Hi All:
I have a client that gives gift certificates (say, $50) away with respect to her business. The business is a dance studio. Essentially, the client is giving away services (all gift certificates are to qualified children's charities) and wants to obtain the charitable contribution deduction. She has received documentation from the charities for receipt of the certificates. I cannot recollect quickly the proper treatment of giving away services and whether this situation qualifies. Any advice is much appreciated! | |
| 12 April 2007 | |
| claim as income when redeemed, subject to SE tax, and a charitable deduction on Sch A (no offset for SE tax)
do nothing (all costs already taken on Sch C) | |
| 12 April 2007 | |
| The deduction for gifts of property must be reduced by the amount that is ordinary income, which reduces the charitable gift to zero. | |
| 13 April 2007 | |
| Thanks for everyone's input! Much appreciated and very easy to catch onto the conceptual aspect... | |
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