Discussion:Noncash Contributions - HAIR DONATION
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Discussion Forum Index --> Tax Questions --> Noncash Contributions - HAIR DONATION
| 12 January 2007 | |
| My client recently donated her daughter's hair to "Locks of Love". Would this be considered for a noncash contribution on Form 8283? Any one ever taken this? If so, what values did you use? Thanks. | |
| 12 January 2007 | |
| Estimated between $750-$1000 depending on the online auction you were to view. | |
| January 12, 2007 | |
| I've never had a hair donation before, but check out Publication 526, pages 7 and 17-18. Also, see Form 8283 instructions. | |
| 12 January 2007 | |
| A topic more worthy of April than January. Decedent donates his organs. Deduction on the 706? Give me a break. | |
| 12 January 2007 | |
| If it is deductible, Locks of Love will send your client a letter with the amount they can deduct. | |
| 12 January 2007 | |
| C'mon folks! No deduction for donating body parts! If there were, the blood banks (or how about the sperm banks) wouldn't have quite as much problem getting donations.
Now for an interesting twist to it. How about if the parent bought the hair from the child and then donated the hair. At that point the hair has a basis of the amount paid. | |
Death&Taxes (talk|edits) said: | 12 January 2007 |
| Ah, Dennis, but what about if I donate a kidney while I am alive? :) I read that one retired sports figure donated a kidney to an ex-teammate, and he and the teammate were not good friends. The donator was not that old, so do we do an actuarial computation of its value? Thank goodness it is January. | |
| January 12, 2007 | |
| What if you become a kidney farmer? Growing replacement kidneys...surely there's something in that? At least the cost of production. Oh, and the production credit. | |
Bottom Line (talk|edits) said: | 12 January 2007 |
| I think that's called cloning | |
Death&Taxes (talk|edits) said: | 12 January 2007 |
| If this were 1982 someone would come up with a kidney farming shelter. Seriously, folks, it's easy to explain to clients why the value of services is not deductible, but kidneys, hair, etc is tangible. I see a new field coming: body part appraisers, though I suspect under the new law, the deduction would be thrown out unless it was in good condition. | |
| 12 January 2007 | |
| Oh come on. Hair may be unusual, but all of you have clients who give blood. Anyone taking a charitable deduction?♫ | |
Corptaxhelp (talk|edits) said: | January 12, 2007 |
| How do you depreciate a kidney?
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| January 12, 2007 | |
| LOL!!!! Think of the tax savings for a barber...of course, those aren't HIS clippings, are they? Sort of like customers who drop off old shoes at the shoe repair shop who donates them to a resale shop... | |
Bottom Line (talk|edits) said: | 12 January 2007 |
| We get the floor sweepings from barbershops to spread around our garden. Stops the raccoons from eating our tomatos. Seems they don't like the smell. Onions work too | |
Death&Taxes (talk|edits) said: | 12 January 2007 |
| Imagine if it were someone famous' real hair, as opposed to a rug....maybe the barber can get charity if he holds the hair a year....donating capital gain property with zero cost | |
| January 12, 2007 | |
| And I think we should 1099 anything that eats or steals your tomatoes. | |
Corptaxhelp (talk|edits) said: | January 12, 2007 |
| Stolen tomatoes seems more like a form 4684. | |
| 15 January 2007 | |
| It is great to see that some accountants have a great sense of humor! | |
Bottom Line (talk|edits) said: | 15 January 2007 |
| Pesky little buggers. We have to put bungie cords on the garbage cans to keep them out. They get in fights in the backyard. Sounds like a cat fight and they're so loud they wake us up! | |
| 15 January 2007 | |
| I know several people that has given hair to Locks of Love no one ever ask this question. But I agree they would need a letter from Locks of Love. Not happening. | |
CpaButNotTaxAccountant (talk|edits) said: | 2008-03-28 |
| Locks of Love website answer: Please check with your tax preparer. We cannot place a monetary value on a ponytail. (http://www.locksoflove.org/faq.html#Aa16)
Wigs For Kids website answer: Although your hair donation is not tax deductible, the cost of the haircut and the mileage to travel to donate the hair is. This card acknowledges that we have received your hair donation. We cannot provide a tax receipt. Please contact your accountant for further information. (http://www.wigsforkids.org/faq/questions-about-hair-donations/questions-about-hair-donations/) | |
| 28 March 2008 | |
| The general rule for donations of property is that you must reduce the deduction by the amount that would not be long-term capital gain if the property had been sold at fmv. Thus, all donations of locks that are less than one-year old would be limited to basis. | |
Accountinglicious (talk|edits) said: | 14 December 2008 |
| Considering " A charitable contribution is a donation or gift to, or for the use of, a qualified organization. It is voluntary and is made without getting, or expecting to get, anything of equal value" (Publication 526), which is a donation, in it's simplest tax definition, why wouldn't hair be deductible. What if one owned a wig and gave it to charity? Same thing, right? I would think either the cost to cut your hair or the FMV of a wig of similar length and color would determine the charitable amount. But then we get on that slippy slope as Dennis pointed out above. Perhaps there should be a write-off for organ donation, maybe this would prompt more people to donate his/her organs. However, you can't necessarily fill out a return when you're dead. I would say for this to be realistic you have to be alive and donate an organ you don't "need" to a qualified organization, not your sister, not your brother, not a teammate. As for donating blood, there's typically little cost for you to do this. Just takes time, maybe a little gas. I guess we would have to figure out a cost basis for either time or blood...and then sometimes you get some cookies and a juice afterwards, would that be getting something of equal value? | |
| 14 December 2008 | |
| When I went from long to short hair, I too donated my ponytail to Locks of Love. Since you can't make a profit from body parts, the donation has no monatery value. IT IS NOT A DEDUCTIBLE DONATION.
Possibly the expense of the haircut so the donation could be made, is deductible as the cost of the donation. | |
| 15 December 2008 | |
| I see no problem in claiming a deduction for the donation of another person's hair. However, all donations must be reduced by the amount that would not be long-term capital gain if the property were sold. Thus, the donation deduction is limited to basis in most cases. | |
| 15 December 2008 | |
| As an 18 gallon blood donor, I would consider hair the same a blood for tax purposes. The only difference is that you won't get orange juice and cookies. | |
| 16 December 2008 | |
| Don't forget that professional blood donors can deduct their special diets and vitamins on Schedule C. | |
ReadMyLips (talk|edits) said: | 16 December 2008 |
| Maybe out-of-pocket expenses--shampoo, conditioner, vitamins, etc... | |
| 17 December 2008 | |
| Treated hair is not acceptable to Locks of Love. It must not be dyed or chemically treated (permed or straightened) for them to accept a donation. I also believe that it must be at least 9" in length. That being said - no donation for body parts...period.
Wouldn't the ultimate be to donate your body to science upon your death & then allow for the entire value of your estate as a deduction. It is what you are/were worth! | |
