Question on how to post charitable donation of time/expertise

Dec 15, 2006 4 Replies
G

I am running Quicken 2001 but I have just upgraded to 2007 and I can't figure it out in either. I donated $1642.25 of consulting time to a non-profit organization and I made up an invoice and gave it to them and they gave me a donation receipt. How do I post this receipt to zero out my Quicken invoice? Technically I didn't receive any cash from them so if I posted it as cash received then donated back as cash it would up my gross receipts on the year so that can't be correct. Also, I don't believe I can void out their invoice and then claim the deduction because it wasn't a cash donation. How do I account for the donation when it is time/expertise?



Thanks, Jess


Vote
Twitter Facebook LinkedIn
B

You can't take a charitable deduction for your time unless you report the income. So you are reporting $1,642.25 of ordinary income to possibly get a Schedule A deduction of $1,642.25. This doesn't make any sense.

Vote
Twitter Facebook LinkedIn
R

I'm not sure how to interpret what you are saying here - there is no income for the OP, just a pseudo invoice.

In any case, you can't take a deduction for the value of your time or services, period.

formatting link

Vote
Twitter Facebook LinkedIn
G

Ok, thanks for the help. I guess that didn't work out how I thought it would.

Thanks, Jess

Vote
Twitter Facebook LinkedIn
P

Brian wrote in news:82Bgh.9480$ snipped-for-privacy@newssvr11.news.prodigy.net:

Some people do exactly this in an attempt to prove to the IRS that they are running a business. Their goal is either to deduct the cost of their hobby as legitimate business expenses, or to show that they have multiple clients and therefore are not a de facto employee of their real client.

Either way it raises a big red flag for the IRS.

Vote
Twitter Facebook LinkedIn

Join the Discussion

Have something to add? Share your thoughts — no account required.

Didn't find your answer?

Ask the community — no account required