Do you have any plans for donating to charity this year? If travel is part of your service, this article describes expenses that are deductible and those that are not.
You cannot deduct the value of your services that you donating to charity, but you may be able to deduct some out-of-pocket costs that you pay to give your services–including the cost of travel. Out-of pocket costs must be unreimbursed, directly connected with the services, Expenses you had only because of the services you gave, and not personal, living or family expenses.
For the travel expenses to be deductible, the volunteer work must be performed for a qualified charity. Most groups other than churches and governments must apply to the IRS to be recognized as a qualified charity.
Some types of travel do not qualify for a tax deduction. For example, you can’t deduct your costs if a significant part of the trip involves recreation or a vacation. You can deduct your travel expenses if your work is real and substantial throughout the trip. You cannot deduct expenses if you only have nominal duties or do not have any duties for significant parts of the trip.
Deductible travel expenses may include air, rail and bus transportation, car expenses, lodging costs, the cost of meals, and taxi or other transportation costs between the airport or station and your hotel.
If a qualified organization selects you to attend a convention as its representative, you can deduct your unreimbursed expenses for travel, including reasonable amounts for meals and lodging, while away from home overnight for the convention. You cannot deduct personal expense for sightseeing, entertainment and other expenses for your spouse or children.
If the requirements are met, traveling while donating to charity can be a win-win.
Please contact us at GKM if you have any questions regarding tax deductions for charitable services.
