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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15312
Experience:  15years with H & R Block. Divisional leader, Instructor
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My church had a company give an estimate for a drainage

Customer Question

My church had a company give an estimate for a drainage problem in the church's basement. the total cost of the project was something like 10 or 12 thousand dollars. The bid or estimate was broken up in several smaller jobs at my request. One of the smaller job was a task that I FELT QUALIFIED TO DO AND HAD TIME AND EQUIPMENT (TOOLS) TO DO THE TASK. So I told the church's building committee I would do this task and the church's liability for this part of the contractor bid would be subtracted from his estimate. All find and dandy. So I start and finish the task in the time the contractor gave me. The bill was lower by $1,500.00(as per his estimate). When I turned in a "Gift in Kind" for the work I had completed, I was told the IRS would not allow a "Gift in Kind" donation for labor. Is this a true statement?
JA: The Expert will know what to do. Is there anything else the Expert should be aware of?
Customer: Between the time I and the building committee agree on doing this project and when I turned a receipt in for my labor on this I had a very painful disagreement with the church's hierarchy. The church's hierarchy has told me that the IRS does not allow me to call this a "Gift in Kind"; it is just a donation of my time and labor for this task. If this is true how does a church member who is the janitor for the church get paid for his task? Further more should we even pay for a priest?
Submitted: 6 months ago.
Category: Tax
Expert:  Robin D. replied 6 months ago.

Hello, I'm Robin. Welcome to JustAnswer. I'm reviewing your question now and typing up my reply. I'll post that in just a few moments.

Expert:  Robin D. replied 6 months ago.

The US tax law does not allow for a deduction for the value of our time in charitable work. If you had spent any money in giving this service then that amount you could claim as a deduction, had you used your own vehicle for the organization's work then you could claim mileage but, No deduction is allowed for the contribution of services to a charity.