Charitable Donation

[CUSO]

Charitable donations question: I have a client who is donating a bunch of household goods to charity.  They are paying a fee to have all of the items picked up.  Are the costs incurred to haul the donated items deductible as well?

[Terry53029]

I think not, as the fee is for a service your client received.

[BobKamman]

I think so, because the fee is for a service the charity received.

Was it paid to the charity?  That makes an even better case.  

Isn't there a place in the software, for people claiming donated goods, to show mileage driven to drop the stuff off, which then calculates the deduction at the standard rate for charitable miles?  Or am I thinking of some other program?

[sjrcpa]

I believe the fee is a misc itemized deduction subject to the 2% of AGI limit for years when it is allowed.

Similar to the appraisal fee for large noncash charitable contributions.

[CUSO]

In this situation, the funds were paid to a 3rd party mover, however, it was a necessary expense in order to make the donation so I would be more inclined to argue that you could deduct the expense.  

To your point, if you had to drive the item over to goodwill (oh wherever) yourself, you could deduct the mileage so I don't see why you can't deduct other costs associated with the transportation of the item.  

[sjrcpa]

"if you had to drive the item over to goodwill (oh wherever) yourself, you could deduct the mileage"

Could you? On what basis? It's not volunteer mileage, at least in my brain.

[BobKamman]

Well, this settles it.  H&R Block says it's deductible. 

Out-of-pocket expenses

If you do volunteer work for a qualified organization, you can deduct:

• Mileage expenses if you use your car while doing volunteer work for a hospital or school
• Mileage expenses for miles you drive to and from a charity to drop off donated goods
• Parking fees, tolls, or public transportation expenses while doing volunteer work or dropping off donated goods

https://www.hrblock.com/tax-center/filing/adjustments-and-deductions/charitable-donations/

Yes, I know, that doesn't mention payments to third parties to get the stuff there.  But that limitation would clearly discriminate against the disabled, who don't drive their own cars. If they took a bus or taxi, it would still count, right?  And are you going to say the moving van only counts if they ride along with it?  Maybe it's not wheelchair accessible.  

[Terry53029]

@BobKamman So your saying, if I pay an airline a fee to fly me to California to donate a coat to goodwill that I can claim the fee as well as the coat ? 😁

[IRonMaN]

Is the plane wheel chair accessible? 😉

[BobKamman]

The word you're looking for is "you're," but at least you have reductio ad absurdum down pat.  

[IRonMaN]

But, but, but, isn't reductio ad absurdum the basis for our tax code?