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Maryland Tax Question - If you donate services, can you write it off?
I was wondering if I donate my web design services to this animal shelter, will I be able to write it off come tax time as a donation? I'm going to do it regardless, just want to know if I can add this to my taxes for donations so I don't owe this year.
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Send them an invoice and money. Tell them to use the money to pay the invoice.
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States usually follow the feds and services of the person filing taxes aren't tax deductible.
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They could potentially be written off as a loss if you are filing through a business though... /not an accountant take that advice for what it's worth...
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no you cant according to my cpa
I do about 50k+ a year in billable work for charities and cant write it off but that would be Federal. |
Do not take tax compliance advice from any message board.
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It "can" be done, but requires a bunch of hoops to jump through. Because you are not donating an actual good but a theoritical amount of time, the IRS will likely see this as volunteer work.
There is a bunch of paperwork you have to file and again, it's up to the IRS to decide (if they look into it) it's an out of pocket expense or not. I had a non-profit ask me to manage some of the AdWords campaigns. They were getting about $7k/mo. of free ads from Google, but wanted someone to help them run it. They said it would be considered a tax deduction, my accountant said its going to be a headache, so I passed on the deal... Which is why I know a little bit about this topic. One thing to keep in mind is the place you are giving "a donation to" would be subject to NP taxes based on what you "gave" to them. IMO, I would just do it out of the kindness of your heart and ask them to put your contact info at the bottom of the site and leave a few business cards in the common area. |
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You'd need to really jump through hoops - otherwise everyone would just make this shit up to avoid paying a chunk of their taxes.
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