Donations, charity & trades on your taxes?

[mjs1973]

We had a benefit fundraiser yesterday for a friend and coworker fighting breast cancer. I donated a framed print, a gallery wrap, and some photo note cards for the silent auction.

How would you handle a situation like this when it comes tax time? Could this be recorded as income, or would it be a charitible donation? And what price would you claim? The price the items brought at the auction, the retail price, or the whole sale cost of the products?

Kind of on the same lines, I have traded a print for a frame. How would you claim something like that on your taxes?

[adina]

Are you officially in business? Like tax number and all?

If so...

re: traded work...you should be claiming it as income, as the full value. My acct says to file it as owners capitol with a jounal entry as to what it's for. Example. I just traded a maternity/newborn album ($2100) for new carpet. I need to file that as $2100 worth of income, mark it as income that was paid to me (owners capitol) and notate that it's floor work.

auction items...the organization should have given you some sort of form with a record of your donation, and it's value. Save that for your accountant. As for tax time, you just claim the expense. Not sure how you would claim it, yet. I just donated a session and canvas to a private school in my area. The value is just under $1000. So they sent me a form, I save that for my records. When I'm ordering the canvas, I just order and file it as usual, and it goes into my expenses, nothing special. I will be emailing my acct when I get home about this same thing, I'll let you know what she has to say.

If you are not officially in business, none of this matters.

[adina]

ps...did I mention, I get to cover the sales tax in all these instances? That kinda bites.

[mjs1973]

Thanks for the info Adina! I do have a tax # and sellers permit, but I haven't actually used them for anything, and I have never listed any photography based income, or expensed on my taxes in the past.

As for the auction items, I didn't get anything from the organizers since they weren't "official" charities. They were put together by some locals to raise $ for sick friends. Not a big deal, but something I want to be aware of when it comes time to file my taxes, just in case.

[adina]

Then you just file your costs as regular expenses.

Will be in touch with my acct, will let you know...