Can Parents Deduct Toys Given to You as a Charitable Contribution?

No. Parents (and family child care providers) can only deduct charitable contributions when they donate items (or give cash) to a charitable organization.

Family child care is not a charitable organization. You may feel like you are running a charity, but you are actually running a business!

When parents do give you used toys or furniture or other items for your business you can deduct them as a business expense. Use the fair market value of the item at the time it was given to you. In other words, estimate what a stranger would pay for the item.

If you make a charitable contribution to your church or Goodwill or the Salvation Army, you can deduct this as a personal charitable deduction, but not a business deduction. See my article, “Are Charitable Contributions Deductible as a Business Expense?”

Tom Copeland – www.tomcopelandblog.com

Image credit: https://www.flickr.com/photos/toymaster/


Categories: Deductions, Record Keeping & Taxes

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