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This brings up an interesting question. You can't deduct time or services donated from your annual tax return, but could you deduct the value of the product you
by d2viant 16y ago
This brings up an interesting question. You can't deduct time or services donated from your annual tax return, but could you deduct the value of the product you gave them? If I create and donate a website to the nonprofit, can the value of that be deducted based on fair-market value?
- portman 16y agoNo, you may not. The relevant sections of the tax code are in Pub561 and Pub526. Basically: the IRS would consider your custom website to have a FMV of $0, because it couldn't be sold to anyone else. If you made a genuine software tool that was applicable to more than just the charity (and you successfully sold copies of that software), then the FMV would be the purchase price of the software in the open market. There was a law passed in 2004 (can't remember which, sorry) that cracked down on the charitable donations of intangible property. [1] http://www.irs.gov/publications/p561/index.html http://www.irs.gov/publications/p561/index.html [2] http://www.irs.gov/publications/p526/index.html http://www.irs.gov/publications/p526/index.html