Oct 21, 2015 | TaxTips|
Here is a question we’ve received several times – Are donated services/labor tax deductible on the “donors” tax return per IRS rules?
Ward, the CFO, at Marathon Bible College (MBC), A private college exempt under Internal Revenue Code section 501(c)(3), calls us with a question. “We are in the process of making budget cuts. There are a few of our current adjunct professors that who have decided to forego being paid for the remainder of the semester. We would write them a letter thanking them for donating their time to the college. Can they claim the value of their donated labor as a contribution for a tax deduction on their tax return?”