Woodworking Business

You are not logged in. [ Login ] Why log in
(NOTE: Login is not required to post)

tax deduction for church cabinets

10/15/20       
Mark Member

I was approached by my church to replace cabinets in the church residence. I intend on charging just the cost of materials. They have a bid from a GC which is 4 times higher than my material costs. Using the GC's numbers as "market value", is there any combination I can use to take the difference of the GC's numbers and mine as tax deductible donation? The law states you cannot take a deduction on services to a charitble organization. Thoughts?

10/15/20       #2: tax deduction for church cabinets ...
Mark B Member

Are you talking about inflating your bill to the GC's amount (or close) and only billing the church for the materials and claiming the entire offset amount (labor) as a charitable donation? The invoice amount I believe would still have to come from the institution. You cant fabricate your own figures.

Seems you should have presented this question to your accountant. 4x your projected material (which is likely way low) seems pretty fair for the cost of a project.

10/16/20       #3: tax deduction for church cabinets ...
Mark Member

Yes, that was my original intent. To deduct the difference on what the GC's cost estimate and my material costs.

After looking into it further, donated services are not tax deductible. They used to be but this changed in 2011.

10/16/20       #4: tax deduction for church cabinets ...
D Brown

Check it out for sure , I was under the impression you can't deduct the labor but yes on products.

10/16/20       #5: tax deduction for church cabinets ...
Mark Member

That is correct, the cabinets alone are deductible when donated to a charitable organization, an example would be if I donated cabinets to Habitat for Humanity or a church, those are tax deductible. How value gets assigned I'm not exactly sure.

my services to build and install are not.

Since my material costs in any cabinet job are deductible as expenses I think the easiest thing for me to do is just do them for my cost of materials.

10/16/20       #6: tax deduction for church cabinets ...
D Brown

I would ask your tax person about the deduction for donations and how that works to be sure.

10/16/20       #7: tax deduction for church cabinets ...
D Brown

Kind of interesting, If I pay for a set of cabinets then donate them how much can I write off ? The same prolly is true for most items.

10/16/20       #8: tax deduction for church cabinets ...
rich c.

Only the cost of materials are deductible as a charitable deduction. I suppose that is the law to avoid huge inflated deductions.

10/17/20       #9: tax deduction for church cabinets ...
Jeff  Member

In the past I’ve always just invoiced the church for the full amount and then wrote them a check as a charitable donation for the same amount or whatever portion I chose to donate. Seems to take out any gray area if there is ever an audit.

10/26/20       #10: tax deduction for church cabinets ...
Marv Member

Your labor is not deductible. Since you are reimbursed for materials, there appears to be no deduction. This has been the same since I started doing taxes 40 years ago.

I always tell people you don't get a deduction unless you write a check. For instance you write a check for cabinets and give them to the church.

11/6/20       #11: tax deduction for church cabinets ...
Harry DeVrieze

Charge the church full price. They pay you full price. Then write the church a check for the difference between your material and your labor. Then deduct that "donation" on your taxes. Its that easy. Contract price . Do not itemize or break down material and labor on their invoice.

Regards
Harry DeVrieze
Lakland Stair & Millwork

11/9/20       #12: tax deduction for church cabinets ...
Marv Member

Case 1. you charge them 50 for parts and they pay it. you break even.

Case 2. you charge them 50 for parts and 50 for labor. they pay it. you break even.

You deduct parts in both cases.


Post a Response
  • Notify me of responses to this thread
  • Subscribe to email updates on this Forum
  • To receive email notification of additions to this forum thread,
    enter your name and email address, and then click the
    "Keep Me Posted" button below.

    Please Note: If you have posted a message or response,
    do not submit this request ... you are already signed up
    to receive notification!

    Your Name:
    E-Mail Address:
    Enter the correct numbers into the field below:
     

    Date of your Birth:



    Return to top of page

    Buy & Sell Exchanges | Forums | Galleries | Site Map

    FORUM GUIDELINES: Please review the guidelines below before posting at WOODWEB's Interactive Message Boards (return to top)

  • WOODWEB is a professional industrial woodworking site. Hobbyist and homeowner woodworking questions are inappropriate.
  • Messages should be kept reasonably short and on topic, relating to the focus of the forum. Responses should relate to the original question.
  • A valid email return address must be included with each message.
  • Advertising is inappropriate. The only exceptions are the Classified Ads Exchange, Machinery Exchange, Lumber Exchange, and Job Opportunities and Services Exchange. When posting listings in these areas, review the posting instructions carefully.
  • Subject lines may be edited for length and clarity.
  • "Cross posting" is not permitted. Choose the best forum for your question, and post your question at one forum only.
  • Messages requesting private responses will be removed - Forums are designed to provide information and assistance for all of our visitors. Private response requests are appropriate at WOODWEB's Exchanges and Job Opportunities and Services.
  • Messages that accuse businesses or individuals of alleged negative actions or behavior are inappropriate since WOODWEB is unable to verify or substantiate the claims.
  • Posts with the intent of soliciting answers to surveys are not appropriate. Contact WOODWEB for more information on initiating a survey.
  • Excessive forum participation by an individual upsets the balance of a healthy forum atmosphere. Individuals who excessively post responses containing marginal content will be considered repeat forum abusers.
  • Responses that initiate or support inappropriate and off-topic discussion of general politics detract from the professional woodworking focus of WOODWEB, and will be removed.
  • Participants are encouraged to use their real name when posting. Intentionally using another persons name is prohibited, and posts of this nature will be removed at WOODWEB's discretion.
  • Comments, questions, or criticisms regarding Forum policies should be directed to WOODWEB's Systems Administrator
    (return to top).

    Carefully review your message before clicking on the "Send Message" button - you will not be able to revise the message once it has been sent.

    You will be notified of responses to the message(s) you posted via email. Be sure to enter your email address correctly.

    WOODWEB's forums are a highly regarded resource for professional woodworkers. Messages and responses that are crafted in a professional and civil manner strengthen this resource. Messages that do not reflect a professional tone reduce the value of our forums.

    Messages are inappropriate when their content: is deemed libelous in nature or is based on rumor, fails to meet basic standards of decorum, contains blatant advertising or inappropriate emphasis on self promotion (return to top).

    Libel:   Posts which defame an individual or organization, or employ a tone which can be viewed as malicious in nature. Words, pictures, or cartoons which expose a person or organization to public hatred, shame, disgrace, or ridicule, or induce an ill opinion of a person or organization, are libelous.

    Improper Decorum:   Posts which are profane, inciting, disrespectful or uncivil in tone, or maliciously worded. This also includes the venting of unsubstantiated opinions. Such messages do little to illuminate a given topic, and often have the opposite effect. Constructive criticism is acceptable (return to top).

    Advertising:   The purpose of WOODWEB Forums is to provide answers, not an advertising venue. Companies participating in a Forum discussion should provide specific answers to posted questions. WOODWEB suggests that businesses include an appropriately crafted signature in order to identify their company. A well meaning post that seems to be on-topic but contains a product reference may do your business more harm than good in the Forum environment. Forum users may perceive your references to specific products as unsolicited advertising (spam) and consciously avoid your web site or services. A well-crafted signature is an appropriate way to advertise your services that will not offend potential customers. Signatures should be limited to 4-6 lines, and may contain information that identifies the type of business you're in, your URL and email address (return to top).

    Repeated Forum Abuse: Forum participants who repeatedly fail to follow WOODWEB's Forum Guidelines may encounter difficulty when attempting to post messages.

    There are often situations when the original message asks for opinions: "What is the best widget for my type of shop?". To a certain extent, the person posting the message is responsible for including specific questions within the message. An open ended question (like the one above) invites responses that may read as sales pitches. WOODWEB suggests that companies responding to such a question provide detailed and substantive replies rather than responses that read as a one-sided product promotion. It has been WOODWEB's experience that substantive responses are held in higher regard by our readers (return to top).

    The staff of WOODWEB assume no responsibility for the accuracy, content, or outcome of any posting transmitted at WOODWEB's Message Boards. Participants should undertake the use of machinery, materials and methods discussed at WOODWEB's Message Boards after considerate evaluation, and at their own risk. WOODWEB reserves the right to delete any messages it deems inappropriate. (return to top)


  • Forum Posting Help
    Your Name The name you enter in this field will be the name that appears with your post or response (return to form).
    Your Website Personal or business website links must point to the author's website. Inappropriate links will be removed without notice, and at WOODWEB's sole discretion. WOODWEB reserves the right to delete any messages with links it deems inappropriate. (return to form)
    E-Mail Address Your e-mail address will not be publicly viewable. Forum participants will be able to contact you using a contact link (included with your post) that is substituted for your actual address. You must include a valid email address in this field. (return to form)
    Subject Subject may be edited for length and clarity. Subject lines should provide an indication of the content of your post. (return to form)
    Thread Related Link and Image Guidelines Thread Related Links posted at WOODWEB's Forums and Exchanges should point to locations that provide supporting information for the topic being discussed in the current message thread. The purpose of WOODWEB Forums is to provide answers, not to serve as an advertising venue. A Thread Related Link that directs visitors to an area with inappropriate content will be removed. WOODWEB reserves the right to delete any messages with links or images it deems inappropriate. (return to form)
    Thread Related File Uploads Thread Related Files posted at WOODWEB's Forums and Exchanges should provide supporting information for the topic being discussed in the current message thread. Video Files: acceptable video formats are: .MOV .AVI .WMV .MPEG .MPG .MP4 (Image Upload Tips)   If you encounter any difficulty when uploading video files, E-mail WOODWEB for assistance. The purpose of WOODWEB Forums is to provide answers, not to serve as an advertising venue. A Thread Related File that contains inappropriate content will be removed, and uploaded files that are not directly related to the message thread will be removed. WOODWEB reserves the right to delete any messages with links, files, or images it deems inappropriate. (return to form)
    Sponsors
    • OMEC/Macoser Inc
      Exclusive Importer of European Woodworking Machinery Since 1988
    • Cabinetshop Maestro
      Web-Based Project Management Software for Custom Cabinet Shops - Manage Jobs from Prospect to Punchlist Through Scheduling, Task Management, Time Tracking and Communication
    • Rangate
      Woodworking Machinery, Supplies and Knowledge
    • ULTI-BOARD
      The Ultimate Spoilboard - ULTI-BOARD - Specifically Engineered and Formulated for the Ultimate in Spoilboard Performance - Not Your Ordinary Sheet of MDF.
    • Machine Bid
      Online auction site for buying and selling high-quality machinery. We offer a secure, online bidding platform, featuring CNC routers, Edgebanders, Sanders, and much more; new equipment added daily
    • INNERGY
      INNERGY is the ERP for woodworkers, by woodworkers. We are birth to death millwork.
    • Air Handling Systems
      Your Best Source for Dust and Fume Collection
    • WoodJobs.com Search Consultants
      Free Employment Service for Woodworking Related Job Seekers
    • Parts Cutter CNC
      CNC Cabinetry and Closet Parts
    • TradeSoft
      Seamless Management Software to Improve Estimating, Job Costing, Scheduling, Purchasing, Shipping, and Shop Floor Data Collection
    • TradeJobPlacement.com
      Individualized Placement Services, Specializing in Millwork Design Engineers
    • Better Vacuum Cups, Inc.
      Vacuum Cups for All CNC Routers As Well As Many After Market Parts for Your CNC
    • Impact Search and Placement
      Professional Employment Recruiting Specialists

    Become a Sponsor today!