Write-Off Question

mmilano

mmilano

Pre-takeoff checklist
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Sep 5, 2005
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Temecula, CA
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Display name:
Mike Milano
If you donate services to something like a non-profit flight club, . could it be considered a write-off? Or does it have to be a charity?
 
I am pretty sure it has to be a registered charity
organization. Need to talk to a good CPA or tax
attorney here.
Don
 
Generally speaking, you can't take a writeoff for your time, just for items of value that you donate, so it depends what you mean by "services."
 
mmilano said:
If you donate services to something like a non-profit flight club, . could it be considered a write-off? Or does it have to be a charity?
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Services don't count. If you donate money or goods it does not have to be a charity to be deductible. What it has to be is an organization certified by the IRS as (I think this is the right section number, but I'm not sure) 301 (c) (3) which includes not just charities but also certain kinds of foundations, for example the AOPA Air Safety Foundation. A club would not qualify.
 
RotaryWingBob said:
Services don't count. If you donate money or goods it does not have to be a charity to be deductible. What it has to be is an organization certified by the IRS as (I think this is the right section number, but I'm not sure) 301 (c) (3) which includes not just charities but also certain kinds of foundations, for example the AOPA Air Safety Foundation. A club would not qualify.
Click to expand...

What Bob said. A flying club would be a 501(c)(7) ("social") non-profit org if it's a non-profit. Other examples include fraternities, Moose/Elks/Eagles/etc. In fact, it wouldn't surprise me if AOPA was a 501(c)(7). The org doesn't pay taxes, but donations are not tax deductible.

To be tax deductible, the donations have to be to a 501(c)(3) charity or educational group. For instance, AOPA ASF, Triangle Fraternity Education Foundation, and your traditional charities.

Disclaimer: Not a tax attorney, accountant, yadda yadda. Just have experience in the area, having served on the boards of directors of both 501(c)(3) and 501(c)(7) orgs.
 
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