501c3 deduction

martinville6 — Wed, 31 Mar 2021 21:14:54 GMT

Our primary residence is Nevada, but we have a second home in Colorado. We let a non-profit 501c3 use the property while we snowbird in Nevada. They have given us a letter stating that they feel that the value to them of us letting them use the house is worth $20,000 for the seven months.

Is that $20K a deduction on our tax return?

Re: 501c3 deduction

ColeenD3 — Wed, 31 Mar 2021 21:41:30 GMT

No.

There are a few things that you can't deduct:

You can't deduct the value of time or services you provide as a volunteer. For instance, if you're a carpenter and you help a nonprofit group build a home for the poor, you can deduct travel costs and building supplies you buy, but not the value of the work you do.
Also, a donor cannot continue to enjoy control over donated funds or property contributed; the gift must be irrevocable to qualify for the charitable deduction.

Partial Interest in Property

Generally, you can't deduct a charitable contribution of less than your entire interest in property.

Right to use property.

A contribution of the right to use property is a contribution of less than your entire interest in that property and isn't deductible.

Example 1.

You own a 10 story office building and donate rent free use of the top floor to a charitable organization. Because you still own the building, you have contributed a partial interest in the property and can't take a deduction for the contribution.

Example 2.

Mandy White owns a vacation home at the beach that she sometimes rents to others. For a fund-raising auction at her church, she donated the right to use the vacation home for 1 week. At the auction, the church received and accepted a bid from Lauren Green equal to the fair rental value of the home for 1 week.

Mandy can't claim a deduction because of the partial interest rule. Lauren can't claim a deduction either, because she received a benefit equal to the amount of her payment.

Re: 501c3 deduction

Carl — Wed, 31 Mar 2021 22:19:30 GMT

It's not deductible because you can't deduct from your taxable income, that which you never received and paid taxes on in the first place.

Re: 501c3 deduction

M-MTax — Thu, 01 Apr 2021 01:21:58 GMT

It's not deductible because of the partial interest rule......https://www.irs.gov/pub/irs-pdf/p526.pdf

topic 501c3 deduction in Deductions & credits

501c3 deduction

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