John M. Hoffman & Associates CPAs

Frequently Asked Tax Questions

Charitable Contributions

"I volunteer as a nurse at the Red Cross blood bank - how much can I claim for my time?"

This has to be one of the largest areas of tax confusion. There is no charitable contribution for one's time. You could take a deduction for the miles that you drive to and from the blood bank - 2007 deduction is 14¢ per mile.

If Tom Brady volunteered at the Boy's and Girl's Club showing kids how to throw a football, do you think he could deduct something for his time? Of course not. What if John Hoffman prepares the financial statement for the Boy's and Girl's Club, could Hoffman take a deduction for what he would have charged? No. Hoffman should get a good feeling for doing that work and Hoffman essentially does not have to report as income the money that he did not get paid for these volunteer services and does not get a charitable donation deduction.

If you donated a weeks use of your Cape Cod vacation home to the WGBH auction you can not claim the "value" of that week. Any deduction would be limited to things such as a cleaning service for the week and perhaps a week's allocation of utilities.