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    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #1

    Mar 30, 2007, 12:05 PM
    Charitable donation
    This one may be splitting hairs but I thought I would ask.

    I know you can't contribute your time and take a charitable deduction. But lets say your time involves producing a tangible product. For example, lets say you are a software developer. You develop an application that you deem worth $1000. You donate that app to a charity. Can you take the deduction?

    Or you are a builder. You build a school house for a church. You deem that school house would sell for $25K, wouldn't that be the same as donating a house?
    delite's Avatar
    delite Posts: 202, Reputation: 3
    Full Member
    		  
    #2

    Mar 31, 2007, 08:33 AM
    Quote Originally Posted by ScottGem
    This one may be splitting hairs but I thought I would ask.

    I know you can't contribute your time and take a charitable deduction. But lets say your time involves producing a tangible product. For example, lets say you are a software developer. You develop an application that you deem worth $1000. You donate that app to a charity. Can you take the deduction?

    Or you are a builder. You build a school house for a church. You deem that school house would sell for $25K, wouldn't that be the same as donating a house?
    You can deduct the cost of the materials used in making the product You cannot use the fair market value for a product made by the donor.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Apr 4, 2007, 12:30 PM
    I will agree tentatively with Delite's position pending post 16 April 2007 research!
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