22 Jun Can I deduct costs from my kids’ charity work?

 Q. My four kids do a lot of work for charities, and I drive them back and forth several times a week. Can I deduct my driving costs even though I don’t actually work for the charities? Could my kids have expenses related to their charity work that we can deduct?

A. It’s terrific that your kids do such great work, but this won’t help you with your deductions.

The answer is a plain old “no,” said Cynthia Fusillo, a certified public accountant with Lassus Wherley in New Providence.

“The IRS says in its Publication 526 (Charitable Contributions) that you cannot deduct expenses paid for another person who provided services to a qualified organization, she said.

Fusillo said the publication gives this example: “Your son does missionary work. You pay his expenses. You cannot claim a deduction for your son’s unreimbursed expenses related to his contribution of services.”

So usually, the deduction for a charitable contribution is related to the donation of either money or property for use by a qualified organization, she said.

“If your gift is `services’ as in the case of your children, then only out-of-pocket costs they incur may be deductible, and the cost must be unreimbursed, incurred only because of the services provided, and directly connected with the service, i.e. not a personal expense,” she said.

An important factor in taking a deduction is that the charitable organization be “qualified,” Fusillo said.

While most charitable organizations are in this category, Fusillo said the following are not: Business leagues or organizations such as a Chamber of Commerce; Civic associations; Social clubs such a country clubs; Homeowners’ associations; Political organizations; Labor unions, and; Foreign charities, though some exceptions apply.

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This story was first posted in June 2015.