Posted by DellaCa on 5/3/06 12:54pm
Msg #117462

Pro Bono work

Some nursing homes and disabled I do work for free ,I was wondering as far as my taxes go would the fee I would have made be dedutable as charity? And the milage be counted also.
Thanks

Reply by Jersey_Boy on 5/3/06 1:07pm
Msg #117464

I live very close to a nursing home and often notarize things for the residents for free. I then make up an invoice like I would for any other doc signing. The invoice is for the notary fee & travel. I just never send the invoice to the customer and then write it off as a loss.

This way you have the notary entry in your journal and the invoice to show for it, which gives you the link to your mileage write-off. You just never received the income, so it's a business loss.

I'm not sure if this is the right thing to do, but my accountant likes it.

NOT LEGAL OR TAX ADVICE... just an opinion from some guy in Jersey.

Reply by Beth/MD on 5/3/06 1:17pm
Msg #117470

Can't you also deduct the time you put into the work? Or is that just for registered charities?

Reply by John_NorCal on 5/3/06 2:56pm
Msg #117511

>>>I'm not sure if this is the right thing to do, but my accountant likes it.<<<
No it isn't the right thing to do, at not if you're on a cash basis accounting. The only way I can see it going down is if you are on an accrual basis, then you could conceivably write it off as a bad debt. Generally speaking you can not write off the value of your time.

Reply by BrendaTx on 5/3/06 2:27pm
Msg #117486

You file 1040 A, I presume. Otherwise, I am pretty sure the charity part is moot.

Reply by Bob_Chicago on 5/3/06 2:56pm
Msg #117512

IMHO, the only reward (in this life anyway) will

be to your self esteem.
I do not believe that you can take a write off if you
are on the cash basis. Even if you are on the accrual basos, you can
not deduct potential income because you never expected to charge
for your service.
You might be able to take a limited mileage allowance for
charitable work
Even if a full blown charity for which you can dedcuct contributions
(IRS %% 501c3) ( Church American Cancer Society etc. )
you can take a deduction for your volunteer time. ,.

Reply by Bob_Chicago on 5/3/06 3:13pm
Msg #117520

Furthermore, even if on accrual basis,

you can not take a bad debt deduction, unless you first
pick up the $ as income. This would only result in
a wash.
Be satisfied with a warm and fuzzy.

Reply by BrendaTx on 5/3/06 3:42pm
Msg #117530

Re: Furthermore, even if on accrual basis, agree w/ Bob

In kind donations run into a lot of muck. Been there and done it. A CPA told me to be very careful with in-kind donations...you have to do a 8??? form. In some cases an appraisal is necessary...I know this is different, but for a lot or a little - do you want an audit flag?

I donated land in a five figure amount to an assisted living place out of San Angelo, Texas in order to get a land deal done. I would have had to string the ded. out for five years based on my income...and then it would have been a big red flag to the IRS to WHEEEEEEE....LOOK AT ME....

Not worth it IMHO.

Reply by DellaCa on 5/3/06 5:53pm
Msg #117541

Re: Thank You-very different views here. n/m

Reply by lulu on 5/3/06 6:41pm
Msg #117547

Just a thought, imagine..............
You take clothing or household goods to the Goodwill. They give you a receipt for your donation of material. This is definitely tax deductible as a donation.
In turn, if you go to do a charitable notarization, in other words pro bono, I would think if you take an invoice stating a final amount due of $0.00 but have it show a value of $??.?? and have someone sign to validation that you supplied the service, this would seem to me to be a logical means of creating a tax deductible donation. Someone posted that a donation would be a red flag for audit. Think of all the people who donate to their church or other organization and many businesses give donations including scholarships. The items I give as examples are material items but my rational tells me it would be worth asking an accountant how to do it to make it tax deductible. IMO anyway.

Reply by LauraV on 5/3/06 7:02pm
Msg #117551

Fee no. Mileage yes. n/m

Reply by Gerry_VT on 5/4/06 12:17pm
Msg #117734

Although I post on this board, I'm not a mobile notary; I only notarize for friends and coworkers. I never charge any fees. Thus, I consider all my notary expenses to be caritible donations and try to deduct milage (at the charity rate, not the business rate), seals, loose certificates, commission fee, etc. In some years I take the standard deduction so it does not matter; other years I itemize and it matters a little.