DEDUCTING SANDY-RELATED VOLUNTEER EXPENSES

To contact us Click HERE

Many individuals, instead of or inaddition to making cash donations to relief organizations, are offeringhands-on assistance to victims of Sandy.
If you are able to itemize onSchedule A you may be able to claim a tax deduction for any “out of pocket”expenses connected with your Sandy-related volunteer efforts.
It is important to note that, to bedeductible, you must be a volunteer with an IRS-qualified organization, such asthe Red Cross.
Here is the word on deducting yourexpenses from the “Out-of-Pocket Expenses in Giving Services” section of IRSPublication 17 (Your Federal Income Tax), with some comments from me (anyhighlights are mine) -
“Althoughyou cannot deduct the value of yourservices given to a qualified organization, you may be able to deduct someamounts you pay in giving services to a qualified organization. The amountsmust be:
•Unreimbursed,
•Directly connected with the services,
•Expenses you had only because of the services you gave, and
•Not personal, living, or family expenses
Ifyou do not want to deduct your actual expenses, you can use a standard mileagerate of 14 cents a mile to figure your contribution. {Using the standard mileageallowance is probably the better choice. FYI, this rate is set by Congress and not the IRS and has not changed ina dog’s age.  It is possible thatCongress may pass legislation to increase this rate for Sandy-related travelonly, as they have done in the past with high-profile natural disasters – rdf}
You can deduct parking fees andtolls whether you use your actual expenses or the standard mileage rate.
Youmust keep reliable written records of your car expenses.  {Thisis very important.  Keep a mileage login, for example, your pocket date book of all the miles driven forSandy-related relief efforts.  Actuually you should keep good records of ALL of your relief-related expenses. - rdf}
Generally,you can claim a charitable contribution deduction for travel expensesnecessarily incurred while you are away from home performing services for acharitable organization only if there is no significant element of personalpleasure {However,on this issue the IRS also says – “Thededuction for travel expenses will not be denied simply because you enjoyproviding services to the charitable organization. Even if you enjoy the trip,you can take a charitable contribution deduction for your travel expenses ifyou are on duty in a genuine and substantial sense throughout the trip.” –rdf}, recreation, or vacation in thetravel. This applies whether you pay the expenses directly or indirectly. Youare paying the expenses indirectly if you make a payment to the charitableorganization and the organization pays for your travel expenses.
Deductibletravel expenses.   These include:
•Air, rail, and bus transportation,
•Out-of-pocket expenses for your car {seeabove – rdf},
•Taxi fares or other costs of transportation between the airport or station andyour hotel,
•Lodging costs, and
•The cost of meals.{Unlike business meals you can deduct 100% of the cost of meals – you are not limitedto 50%. - rdf}”
As I mentioned above, Congress maypass legislation to add or liberalize deductions for Sandy-related travel, asthey have done in the past with high-profile natural disasters.  If they do I will let you know here at TWTP.
If you donate canned or other fooditems to a charity for Sandy victims be sure to keep your supermarket receiptand circle the items donated.  And if youdonate used clothes or household items be sure to make a detailed listing ofwhat you are giving.
Remember, you must give these itemsto a recognized charitable organization. If you put together a care package and give or send it directly to aspecific needy individual or family you cannot claim a deduction on Schedule A.
TTFN