Giving back by volunteering or serving on a non-profit board is a reward in itself. What makes it even better is that the government wants to give you a little break at tax time for your service as well.
Taxpayers are able to deduct reasonable expenses for travel, meals, and entertainment when travelling to perform charitable services. In order for expenses to be deductible, there cannot be a significant amount of personal recreation or vacation, the travel cannot be related to influencing legislation on behalf of a tax exempt organization, and the taxpayer's service must require them to be away from their permanent residence overnight.
For individuals who travel by car to perform charitable services, there is a standard mileage rate that the government allows. For the 2011 and 2012 tax years, taxpayers are able to deduct 14 cents per mile as well as tolls and parking costs incurred.
Keep written records of your travel and save all receipts related to the deductions you will be claiming. As always, use good judgment when considering the deductibility of expenses. The IRS does consider how necessary the travel was in order to perform the charitable services.
If you have any questions, or require additional information, please contact:
Susan K. Marley, CPA
302-656-6632
SMarley@CoverRossiter.com
This article can also be found on our website at http://bit.ly/VolunteerRewards.
Cover & Rossiter is one of the area's oldest and most respected certified public accounting and advisory firms. Focused on being the best rather than the biggest, we assembled an outstanding team with a wide range of skills. It is our goal to provide our clients with innovative services designed to maximize profitability and minimize tax burden. Our advice is current… our client focus timeless.
Thursday, April 26, 2012
Monday, April 2, 2012
FASB Project on Accounting for Leases
The rules on lease accounting have remained substantially unchanged since the 1970’s. For the most part, lease payments are expensed as paid over the course of the lease. Leases where the threshold for ownership transfer is met as defined by a narrow series of accounting parameters (capital leases) are accounted for as though the ownership had in fact changed hands with the net present value of lease payments being treated as a debt to be paid.
The Financial Accounting Standards Board (FASB) released an initial exposure draft on lease accounting rules in 2011, which, if implemented, would result in major changes to the manner in which leases are recorded by both lessors and lessees. Based on the feedback received from industry professionals, the FASB decided to revise this exposure draft and FASB expects to issue a revised exposure draft by mid 2012.
Based on the current exposure draft, all organizations would require the recording of “right of use” assets (or liability) for all leases based upon the net present value of the contractual and probable lease payments discounted based on the incremental borrowing rate of the lessee.
If you have any questions or would like more information, please contact:
Eric Williams, CPA 302-656-6632 ewilliams@coverrossiter.com
The Financial Accounting Standards Board (FASB) released an initial exposure draft on lease accounting rules in 2011, which, if implemented, would result in major changes to the manner in which leases are recorded by both lessors and lessees. Based on the feedback received from industry professionals, the FASB decided to revise this exposure draft and FASB expects to issue a revised exposure draft by mid 2012.
Based on the current exposure draft, all organizations would require the recording of “right of use” assets (or liability) for all leases based upon the net present value of the contractual and probable lease payments discounted based on the incremental borrowing rate of the lessee.
If you have any questions or would like more information, please contact:
Eric Williams, CPA 302-656-6632 ewilliams@coverrossiter.com
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