This week’s tidbit is short but interesting. I have several client’s who donate a week’s use of their vacation condo at church raffles and such so I found this little tidbit in the research archives interesting and thought you all might find it interesting too.
A taxpayer donated one week’s use of his vacation condo to his church as a raffle prize. The taxpayer retained ownership of the property. Can he take a charitable contribution deduction for the fair market rental value of the property? One would think the answer was yes since the taxpayer is giving up one week’s income but the answer is a bit of a shock….
To receive a charitable contribution deduction, the taxpayer must transfer ownership of the property to the charitable organization. The fair rental value of the condo does not qualify for a charitable contribution deduction. You see he only gave up income that may or may not have been his depending on whether the condo was rented that week, he didn’t actually give up any control of the property to the charity.