Wednesday, April 29, 2009

Donating Services and Products to the Lance Armstrong Foundation


I'm from Las Vegas, NV, and I own a production company.

We have recently been asked to have our photobooth at a Lance Armstrong Foundation event coming up in May and was trying to see if it was considered a tax deduction and what I would need to have the proper documentation to show at the end of the year.

From what I understand, I can't charge for my time, but I can charge for my expenses. Since I won't be me running the booth, it is one of my employees running the booth, using our paper and ink, our equipment tech setting and tearing it down, I am thinking that the payroll, supplies, and gas is tax deductible.

Am I correct in this or completely off base?

I thank you in advance for your time.

Hello Gabriel,

Congratulations on being asked and congratulations on accepting.

You are correct. All you expenses are deductible -- payroll, supplies, auto expense. Since your name will be outside the booth I assume this is a means of promoting your business. Since that is the case, then these are business deductions. If there were no business purpose for your helping a good cause then it would not be a business deduction, it would be a personal deduction.



Emily Dorr said...

Is this true for other states than Nevada? And for businesses as well as the self-employed? I am from Maryland and have heard otherwise, but never explained how you have here.

June Walker said...

Dear Emily,

That is how the feds treat donating time and, as far as I know, every state.

-- June