Charitable deductions for temporary loan of primary residence for fundraiser

Not a deductible charitable contribution, but probably taxable rental income for the value of permanent improvements to the property or furniture left behind, therefore rental expenses (including utilities) deductible up to the amount of income (on Schedule A, subject to 2% AGI floor) since it is a not-for-profit rental activity.

-Mark Bole

Thats an interesting situation. Generally, one can claim a tax deduction for out of pocket expenses for charitable purposes. But, you would have to research to see just how far you can go with it.

-----> real address on hobokeni or hobokenx

wrote

Yeah, like everyone does this all the time.

Must be a nice place is al I can say.

Have the charity address her rental of lodging as "for the benefit of" the charity - this event specifically - as well as addressing the issues of who covers the utilities, moving costs, etc on the house for the quarter of the year (seems quite long to me). That written statement - besides being necessary - might help prove that the expense was incurred on behalf of, and for the benefit of, the charity.

That or seal the deal by writing checks to the charity and have them pay the expenses themselves.

Improvements are removed.

CBS

Or perhaps there will be imputed rent, and that rent can be both recognized and deducted, resulting in a wash. However in that case the homeowner will be required to recognize depreciation for the period the charity is using the property.

The way of avoiding a problem is to allow the charity to use the property for 14 days or less in any one tax year.

Stu

What's interesting to me is that you say you have a "potential client". This sounds like he's shopping around to see who will give a favorable thumbs up to such a deduction.

I wouldn't.

ChEAr$, Harlan Lunsford, EA n LA

"What's interesting to me is that you say you have a "potential client". This sounds like he's shopping around to see who will give a favorable thumbs up to such a deduction."

Actually I don't think She is that crafty. The benefit I think she gets is the publicity and community recognition for beings a "Grand Dam" of the community and a Princes in her circle of "friends"

I just asked "the question" of her to see if there had been any consideration

CBS

Based on the facts you present the taxpayer would likely have a deduction for the costs of moving her stuff out and back in (along with storage costs in the interim). She might also be able to deduct cost of renting and maintaining her temporary living quarters.

There would be no deduction for the rental value of her home.

I can't find anything to support this in Pub 526, but I haven't checked tax law.

Even if we greatly stretch the meaning of "services" to include rent-free use of real property, it's stated several times that deductible out-of-pocket expenses related to providing a service to a charity must "not [be] personal, living, or family expenses."

Furthermore, you can only deduct the amount of a contribution that is more than the value of the benefit you receive, so I suppose flying to New York and renting a Manhattan penthouse for three months would not be fully deductible as a charitable contribution. The fair market rental value of her house less her temporary lodging expense might be deductible, but only if it is a positive number.

In a house large enough to accomodate "tours" for paying customers, why can't she simply put some personal items in storage, lock her bedroom door and liquor cabinet during the day, and then come home each evening to spend the night? She's already agreeing to let the general public tromp through her house, I don't see how moving out is "directly connected with the services" provided (again, stretching the meaning of "services" almost beyond recognition).

Before researching the tax treatment of this situation, I'd advise the potential client to check whether she will have additional homeowner's insurance requirements. As a side note, I also question how much of the admission charged for house tours is deductible to the payees...

Smetimes I remind people that the the primary purpose of contributing to a charitable organization is not to get a tax deduction.

-Mark Bole

...

Which suggests only the costs of moving her furniture out and back in is deductible.

Nope, that is NOT deductible.

Interesting; I asked, "Anyone have any history on the tax treatment of this situation?"

divers spread of opinions.

The common thread is to deny a deduction for moving out storage and back in, then to drift off into other issues.

When I asked other "ShowHouse" operators I got complete silence on this activity. And finally we know the IRS reads these listings to get educated themselves.

Ah such an interesting future.

Thank you all

N Nichols CBS