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Level 4
December 9, 2021

Charitable Donation

  • December 9, 2021
  • 10 replies
  • 69 views

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?

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    10 replies

    Intuit Community Champion
    December 9, 2021

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

    BobKamman
    Level 15
    December 9, 2021

    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?

    CUSOAuthor
    Level 4
    December 10, 2021

    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
    Level 15
    December 10, 2021

    "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.

    The more I know the more I don’t know.
    BobKamman
    Level 15
    December 10, 2021

    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.  

    Intuit Community Champion
    December 10, 2021

    @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
    Level 15
    December 10, 2021

    Is the plane wheel chair accessible? 😉

    Slava Ukraini!