Interesting; I asked, "Anyone have any history on the tax treatment of
this situation?"

- quote -


The common thread is to deny a deduction for moving out storage and
back in, then to drift off into other issues.

When I asked other "ShowHouse" operators I got complete silence on
this activity. And finally we know the IRS reads these listings to
get educated themselves.

Ah such an interesting future.

Thank you all


N Nichols
CBS

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On Jan 19, 9:04*pm, Mark Bole <ma...[at]pacbell.net> wrote:

....
- quote -

Which suggests only the costs of moving her furniture out and back in
is deductible.

- quote -

Nope, that is NOT deductible.

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Bill Brown wrote:
- quote -

I can't find anything to support this in Pub 526, but I haven't checked
tax law.

Even if we greatly stretch the meaning of "services" to include
rent-free use of real property, it's stated several times that
deductible out-of-pocket expenses related to providing a service to a
charity must "not [be] personal, living, or family expenses."

Furthermore, you can only deduct the amount of a contribution that is
more than the value of the benefit you receive, so I suppose flying to
New York and renting a Manhattan penthouse for three months would not be
fully deductible as a charitable contribution. The fair market rental
value of her house less her temporary lodging expense might be
deductible, but only if it is a positive number.

In a house large enough to accomodate "tours" for paying customers, why
can't she simply put some personal items in storage, lock her bedroom
door and liquor cabinet during the day, and then come home each evening
to spend the night? She's already agreeing to let the general public
tromp through her house, I don't see how moving out is "directly
connected with the services" provided (again, stretching the meaning of
"services" almost beyond recognition).

Before researching the tax treatment of this situation, I'd advise the
potential client to check whether she will have additional homeowner's
insurance requirements. As a side note, I also question how much of the
admission charged for house tours is deductible to the payees...

Smetimes I remind people that the the primary purpose of contributing to
a charitable organization is not to get a tax deduction.

-Mark Bole

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On Jan 15, 7:48*pm, "ChenangoBusinessServi...[at]hotmail.com"
<ChenangoBusinessServi...[at]hotmail.com> wrote:
- quote -

Based on the facts you present the taxpayer would likely have a
deduction for the costs of moving her stuff out and back in (along
with storage costs in the interim). She might also be able to deduct
cost of renting and maintaining her temporary living quarters.

There would be no deduction for the rental value of her home.

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"What's interesting to me is that you say you have a "potential
client".
This sounds like he's shopping around to see who will give a
favorable
thumbs up to such a deduction."

Actually I don't think She is that crafty. The benefit I think she
gets is
the publicity and community recognition for beings a "Grand Dam" of
the community
and a Princes in her circle of "friends"

I just asked "the question" of her to see if there had been any
consideration


CBS

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ChenangoBusinessServices[at]hotmail.com wrote:
- quote -

This sounds like he's shopping around to see who will give a favorable
thumbs up to such a deduction.

I wouldn't.

ChEAr$,
Harlan Lunsford, EA n LA

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Mark Bole wrote:
- quote -

Or perhaps there will be imputed rent, and that rent can be both
recognized and deducted, resulting in a wash. However in that case the
homeowner will be required to recognize depreciation for the period the
charity is using the property.

The way of avoiding a problem is to allow the charity to use the
property for 14 days or less in any one tax year.

Stu

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Improvements are removed.

CBS

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<ChenangoBusinessServices[at]hotmail.com> wrote
- quote -




Yeah, like everyone does this all the time.

Must be a nice place is al I can say.




Have the charity address her rental of lodging as "for the benefit of" the
charity - this event specifically - as well as addressing the issues of who
covers the utilities, moving costs, etc on the house for the quarter of the
year (seems quite long to me). That written statement - besides being
necessary - might help prove that the expense was incurred on behalf of, and
for the benefit of, the charity.

That or seal the deal by writing checks to the charity and have them pay the
expenses themselves.




--
Paul A. Thomas, CPA
Athens, Georgia

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On Jan 15, 7:48 pm, "ChenangoBusinessServi...[at]hotmail.com"
<ChenangoBusinessServi...[at]hotmail.com> wrote:
- quote -


Thats an interesting situation.
Generally, one can claim a tax deduction for out of pocket expenses
for charitable purposes.
But, you would have to research to see just how far you can go with
it.



<<< Benjamin Yazersky, CPA [NJ & NY] > > -----> real address on hobokeni or hobokenx <-----





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ChenangoBusinessServices[at]hotmail.com wrote:
- quote -

Not a deductible charitable contribution, but probably taxable rental
income for the value of permanent improvements to the property or
furniture left behind, therefore rental expenses (including utilities)
deductible up to the amount of income (on Schedule A, subject to 2% AGI
floor) since it is a not-for-profit rental activity.

-Mark Bole

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I have a potential client who want to "lend her home" for an extended
period, three months, to a 501c3 to run a House Tour operation. The
501c3 will be fixing up the house with furniture and decorations,
charging admissions, holding fundraisers etc. The owner will have to
rent temporary accommodations, move her "stuff out" and move back in.
Likely she'll pay the utilities as well.


Do we have any history on the tax treatment of this situation.


Noel Nichols
Chenango Business Services

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