Aloha,
As the money gets tighter and tighter these days and the state and federal governments seem to get more aggressive, I am hoping there is a tax accountant out there or other paddlers maybe have considered the following.
Can you deduct outrigger club dues?
If you are a coach can your deduct mileage to go to outrigger practice?
Can you deduct race fees, since they do go to a non-profit?
Just asking, maybe someone knows. Not as exciting as racing, but maybe someone else can be helped with the answers.
Submitted by JJ on Sun, 02/13/2011 - 5:12pm
Your membership dues are not deductible. Only donations to non-profits can be deducted. A donation means you gave money and received no goods or services in return. Your membership dues allow you access to the club's programs therefore you received 'services' and it's not deductible. Same is true with race fees.
You should also make sure the club is in fact a 501c3 non-profit registered with the IRS and State government. Some clubs are 501c4s which operate under different rules.
If you do make a donation to a canoe club, or any non-profit for that matter, you should ask for a letter acknowledging your donation. The club should provide their federal ID number, amount of your donation, and the date the donation was made. They should also note that you received no goods or services for your donation.
If you make an in-kind donation (i.e. paddles, a canoe, other equipment) you should also receive an acknowledgement letter with all of the items listed. The more detail the better. For example: Two 51' Kialoa paddles in excellent condition, 1 Bradley Lighting in good condition, 3 Bosh palm sanders in fair condition. The details will help justify the value of the items on your taxes. The non-profit cannot give you a value for the in-kind items--you must do that with your accountant or make an educated guess.
#1 Mon, 02/14/2011 - 9:59pm
Mahalo-This is great information
#2 Tue, 02/15/2011 - 7:47am
@Manakai - Thanks so much...
One thing in the taxes it asks if you purchased a vehicle or boat in the last year. Does a OC-1 count as boat? Does the definition get that specific?
Thanks,
~L
#3 Tue, 02/15/2011 - 8:33am
@lliddell-- I do not know if an OC1 counts as a boat--you should check with a tax professional. My best guess is it does not count.
#4 Tue, 02/15/2011 - 9:39am