Q&A: Is Donated Parking Space Tax Deductible?

Q: A church member allows us to park our buses at his business. We used to pay $200 a month for this service. In the past we have given this church member a letter indicating a donation of $2,400 per year, which he could use as a charitable contribution. Our question is, "What is the proper method to handle this?"

A: The contribution of services is not tax deductible. You may give him a letter thanking him for his contribution.

For more help with charitable contributions, check out chapter 8 of Richard Hammar's2013 Church & Clergy Tax Guide.

This content is designed to provide accurate and authoritative information in regard to the subject matter covered. It is published with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. "From a Declaration of Principles jointly adopted by a Committee of the American Bar Association and a Committee of Publishers and Associations

Comments

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Redlands Attorney

November 05, 2013  5:08pm

Hello Frank, I am glad to see this post reiterating tax law that has been around for years. Every once and a while this issue comes up whenever there is a donation of measurable value. It's funny about churches though, as if they don't get enough tax breaks, haha. -Harvard Barnett

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