Sugar Land, TX asked in Tax Law for Texas

Q: Can an LLC's donation of a service be tax deductible?

If I donate to a 501(c)(3) silent auction one of my seminar's, what are the tax implications?

1) If I price the seminar at $500 and the winning bid is $600, then does the winner claim a $100 donation to the charity?

2) And do I claim a $500 donation to the charity in that case/

3) If the $500 seminar has a winning bid of $400, do I claim a $400 donation to the charity?

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1 Lawyer Answer
Kacie Marie Czapla
Kacie Marie Czapla
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Answered
  • Tax Law Lawyer
  • Tyler, TX
  • Licensed in Texas

A: Services are not an eligible deduction for the charitable contribution deduction. You would have to contribute cash or property.

If the winning bid is greater than the value of the item bid on, that person may receive a charitable deduction for the extra piece, BUT there are many many hoops for them to jump through. Their CPA would have to answer that question.

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