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moist_plum
Apr 8, 2007, 06:02 PM
Hi
If I provided a work for non profit with a discounted rate (approx. 20%), can I put
down the discounted amount in Charity/Donation sector? This was how I and
my non-profit client negotiated the pricing when we began the work relationship,
and I would like to check if this is really possible.

I have a letter from the client, who is a University, saying that they are
a non-profit organization, and therefore they were offered a discounted rate.

In case of IRS audit, would this be enough to justify "Charity/Donation" amount?

Thanks so much again in advance.

Best

The Texas Tax Expert
Apr 8, 2007, 06:36 PM
Hi
If I provided a work for non profit with a discounted rate (approx. 20%), can I put
down the discounted amount in Charity/Donation sector? This was how I and
my non-profit client negotiated the pricing when we began the work relationship,
and I would like to check if this is really possible.

I have a letter from the client, who is a University, saying that they are
a non-profit organization, and therefore they were offered a discounted rate.

In case of IRS audit, would this be enough to justify "Charity/Donation" amount?

Thanks so much again in advance.

Best

You cannot deduct anything for the time you provide to the charity at the discounted rate. You can claim expenses you incurred for which you were not reimbursed.

AtlantaTaxExpert
Apr 17, 2007, 10:24 AM
Agreed!