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How do I claim out-of-pocket expenses and travel for charitable contributions?

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Question
How do I claim out-of-pocket expenses and travel for charitable contributions?

Answer

Car Expenses
You can deduct unreimbursed out-of-pocket expenses, such as the cost of gas and oil, that are directly related to the use of your car in giving services to a charitable organization. You cannot deduct general repair and maintenance expenses, depreciation, registration fees, or the costs of tires or insurance.

If you do not want to deduct your actual expenses, you can use a standard mileage rate to figure your contribution.

You must keep reliable written records of your car expenses.

Travel
Generally, you can claim a charitable contribution deduction for travel expenses necessarily incurred while you are away from home performing services for a charitable organization only if there is no significant element of personal pleasure, recreation, or vacation in the travel. This applies whether you pay the expenses directly or indirectly. You are paying the expenses indirectly if you make a payment to the charitable organization and the organization pays for your travel expenses.

The deduction for travel expenses will not be denied simply because you enjoy providing services to the charitable organization. Even if you enjoy the trip, you can take a charitable contribution deduction for your travel expenses if you are on duty in a genuine and substantial sense throughout the trip. However, if you have only nominal duties, or if for significant parts of the trip you do not have any duties, you cannot deduct your travel expenses.

Daily Allowance (Per Diem)
If you provide services for a charitable organization and receive a daily allowance to cover reasonable travel expenses, including meals and lodging while away from home overnight, you must include in income the amount of the allowance that is more than your deductible travel expenses. You can deduct your necessary travel expenses that are more than the allowance.

Deductible Travel Expenses
These include:

  • Air, rail, and bus transportation.
  • Out-of-pocket expenses for your car.
  • Taxi fares or other costs of transportation between the airport or station and your hotel.
  • Lodging costs.
  • The cost of meals.

Because these travel expenses are not business-related, they are not subject to the same limits as business related expenses.


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Views: 1102 Created on: Jun 15, 2013
Date updated: Dec 10, 2018

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