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?
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.
1 user found this answer helpful
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.