W. Edward Newton Jr., CPA, CFP (R) | 13850 Ballantyne Corporate Place, Suite 500 | Charlotte, NC 28277 | 704-552-8689

 


6 Tips to Keep in Mind for Taxpayers Traveling for Charity


During the summer, some taxpayers may travel because of their involvement with a qualified charity. These traveling taxpayers may be able to lower their taxes.


Here are 6 tax tips for taxpayers to use when deducting charity-related travel expenses:

- Qualified Charities. For a taxpayer to deduct costs, they must volunteer for a qualified charity. Most groups must apply to the IRS to become qualified. Churches and governments are generally qualified, and do not need to apply to the IRS. A taxpayer should ask the group about its status before they donate. Taxpayers can also use the Select Check tool on IRS.gov to check a groupís status.

- Out-of-Pocket Expenses. A taxpayer may be able to deduct some of their costs including travel. These out-of-pocket expenses must be necessary while the taxpayer is away from home. All costs must be:
> Unreimbursed,
> Directly connected with the services,
> Expenses the taxpayer had only because of the services the taxpayer gave, and
> Not personal, living or family expenses.

- Genuine and Substantial Duty. The charity work the taxpayer is involved with has to be real and substantial throughout the trip. The taxpayer canít deduct expenses if they only have nominal duties or do not have any duties for significant parts of the trip.

- Value of Time or Service. A taxpayer canít deduct the value of their time or services that they give to charity. This includes income lost while the taxpayer serves as an unpaid volunteer for a qualified charity.

- Travel Expenses a Taxpayer Can Deduct. The types of expenses a taxpayer may be able to deduct include:
> Air, rail and bus transportation,
> Car expenses,
> Lodging costs,
> Cost of meals, and
> Taxi or other transportation costs between the airport or station and their hotel.

- Travel Expenses a Taxpayer Canít Deduct. Some types of travel do not qualify for a tax deduction. For example, a taxpayer canít deduct their costs if a significant part of the trip involves recreation or vacation.

For more on these rules, see Publication 526, Charitable Contributions. Get it on IRS.gov/forms at any time.

Feel free to give us a call if you have a question about this particular topic or issue or if you need help or want to get started on tax planning for the rest of 2017!  If you have comments on the information in these articles, as usual feel free to call our offices.


 

 


 

"Review" us on our Facebook FAN Page

 

Hi everyone!!  We've recently updated our business/fan page for our business.

 

If you want updates on tax or related subjects, click on this link and LIKE our page PLUS we'd love for you to REVIEW US on Facebook, click here to take you to the Review page so you can write a review!
 

We'll post new relevant information on tax reduction, accounting & finance that you can read and comment on.

 

Thank you in advance for "Liking" us!

 



Would You Do Me A Quick Favor And Give Me An Online REVIEW on Google+ Local?

If you are a local business like I am, more and more people FIND you by going online and searching.  To help me be found the same way by good customers like you would you take 2 minutes and give me a Review on my Google+ Local listing?

 

Just click here and it will take you to my listing.  From there just click on the Write a Review button.  Thank you in advance for your help! 

If you have any questions about giving us a Review or have an accounting or investments question about yourself or your business, please give me a call at 704-552-8689.  I can help guide you in the right direction.

 

 


 

As always you can call our offices if you have any questions about these or any other accounting, tax, financial planning or Quickbooks related issues, at 704-552-8689. 

 

Regards, W. Edward Newton Jr., CPA

Certified Public Accountant

 

 

 

 

W. Edward Newton Jr., CPA | Certified Public Accountant

13850 Ballantyne Corporate Place, Suite 500 Charlotte, North Carolina 28277
Phone: (704) 552-8689  |  Email: ed@newtonassociatescpa.com