How Do You Take Tax Deductions For Charitable Contributions Where Property Or Services Are Received In?
No, you cannot go to a charity ball for $500 a couple, spend $1,000 more on an auction for a weekend rental and write the whole $1,500 off on your taxes. The way the Internal Revenue Service views it, you received a benefit and can deduct only the amount of your contribution that is more than the value of the benefit you received. Estimate the fair market value of the goods or services you received, if this value has not already been established. Subtract this amount from the amount you paid for the goods or services. Enter the result as your charitable contribution on your itemized tax return.
