Like the title says, from the filing process and tax questions to tax policy and reform, you can search and share All Things Tax here. This is the place to find answers to all your general questions that don't fall under the other categories. And just a reminder: questions about software or online filing should be posted in DIY Products.
01-11-2018 06:49 PM - edited 01-11-2018 06:50 PM
Self employed via my own web design business.
If I were to donate a website to a 501(c)3 non-profit charity would I be able to write any or all of that off on taxes?
01-12-2018 03:36 PM
Welcome to the community. I understand you are speaking about the time it took to create the website. Unfortunately, the value of time donated to any organization, is not deductible. Say a lawyer draws up paperwork for a charitable organization, and does not charge for such. The lawyer is not allowed to deduct the amount that would have been charged to a paying client. Hope that clarifies the situation for you.
01-12-2018 10:30 PM - edited 01-12-2018 10:51 PM
Well - obviously building a website takes time but I would argue that a client isn't paying for the time I put into the website, they are paying for the value that my delivered product will bring to their business.
In short though - they are paying for an end product.
01-12-2018 11:45 PM
Welcome to the H&R Block community.
While I do see your point, the previous post is correct. You cannot take a charitable contribution for your own time.
However, you can take a charitable contribution the cost of things that you put into this project that the charitable organization will receive and be able to use. If for instance you paid for the domain name and/or any tools to help you build the website that the organization can use to update it those are costs incurred in your charitable work for this organization and are thus deductible. On the other hand, if you pay for a website building tool but you keep the tool instead of giving the ability to access & use it to the organization so they can update their website then that's not deductible.
The same would be true if you delivered food for a charity like Meals on Wheels. You cannot deduct the cost of your time & effort that you put into your work, but you can take a charitable miles deduction for the cost of driving from the organization's location to the people it serves and back.
I'll give you one more example. Let's say you work with habitat for humanity to build a house for someone in need of one. You cannot deduct the time you put into the project, but if you incur expenses in building it, for instance if there's a shortage of building materials and you donate everything that's still needed so the house can be finished then the cost of those materials would certainly be deductible. Materials that you keep, however, are not deductible.
If you have any other questions I'll be glad to help.
Senior Tax Advisor (Tampa, FL)