October 31, 2013
Q&A: Is Donated Parking Space Tax Deductible?
Tax law suggests one church may need to rethink its approach.
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's 2013 Church & Clergy Tax Guide.