Question

Articles indicate that you can donate an in-kind service, such as technical consulting. providing its service you provide professionally, any experience with this?

Forum|Forum|3 years ago
January 20, 2023
1 reply
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Most of what I read shows that an in-kind donation of a service if it is applicable to your normal work is deductible. For example as I techinical consulant I donate 50 hours of work to a 501(c3) at my normal rate. Should I be able to deduce the value of that?

TurboTax Online

JohnB5677

No, you cannot deduct the value of time or services to a charitable organization.

You could get paid for a job, and turn around and give the money back, but that wouldn't be wise. The donation has to go on your personal tax return, and the income would be on the business return. You would end up paying self-employment tax (15.3% on it). Your best alternative is to do the work for charity and have the benefit of knowing that you did something good.

You can't deduct the value of your time or services, including:

Blood donations to the American Red Cross or to blood banks, and
The value of income lost while you work as an unpaid volunteer for a qualified organization.

See the top of page 8 IRS Publication 526

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J

jeremy-pleasantAuthor

Thanks for the quick reply and info. It's not necessary, it's just a lot of hours so I wanted to know what my options were.

M

Mike9241

@jeremy-pleasant While you will not receive a deduction for the donation of services, physical products and costs associated with donated experiences are eligible for deduction.