Is donated Computer time to Einstein tax detuctable?

zorkbirder
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Topic 191536

When you donate the use of a car to a charity you can deduct a mileage charge. Since I’m donating my computer to a charity, I assume I can deduct the cost of computer time used. For example my computer draws 65 watts for 20 hrs per day for Einstein or 1.3 Kw-hr/day. For a year that is 475 Kw-hr @$.15/Kw-hr, I use $71 in electricity. In addition, a computer rental cost about $200 per month, assuming a 90% discount for a charity, the computer use is valued at $240/yr (80% for Einstein) or $200. So seems logical I can deduct $271 per year.
Any comments?

somebodley
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Is donated Computer time to Einstein tax detuctable?

Quote:
When you donate the use of a car to a charity you can deduct a mileage charge. Since I’m donating my computer to a charity, I assume I can deduct the cost of computer time used. For example my computer draws 65 watts for 20 hrs per day for Einstein or 1.3 Kw-hr/day. For a year that is 475 Kw-hr @$.15/Kw-hr, I use $71 in electricity. In addition, a computer rental cost about $200 per month, assuming a 90% discount for a charity, the computer use is valued at $240/yr (80% for Einstein) or $200. So seems logical I can deduct $271 per year.
Any comments?


I would love to see the look on the Taxman's face ... !!! :-))
But why not try it ... he might just allow it!!! (after all, he can only say NO!!!)
Good Luck!!!

John Hunt
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Interesting what tax


Interesting what tax deductions you can make in the U.S.

More here.

Pooh Bear 27
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From what I understand it can

From what I understand it can not be. I have asked my tax advisor the last couple of years. Something about it being a personal choice, and it not being considered donating.

He equated it to being a volunteer. You can write off the milage, but you can not write off the "wear and tear", or your physical time. Since I am not a business I am not writing the computers off as an asset. They are just taking up electricity.

I know I am not the best to explain this, but I remember seeing the argument on another board, and a tax person actually gave some reasons why it is not deductible.

Daniel Michel
Daniel Michel
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RE: From what I understand

Message 41967 in response to message 41966

Quote:

From what I understand it can not be. I have asked my tax advisor the last couple of years. Something about it being a personal choice, and it not being considered donating.

He equated it to being a volunteer. You can write off the milage, but you can not write off the "wear and tear", or your physical time. Since I am not a business I am not writing the computers off as an asset. They are just taking up electricity.

I know I am not the best to explain this, but I remember seeing the argument on another board, and a tax person actually gave some reasons why it is not deductible.


The main thing that might be tax deductible would be the electricity used...But that would be very difficult to quantify to the satisfaction of the IRS.

John Hunt
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RE: ......satisfaction of


Quote:
......satisfaction of the IRS.

I'm sure they need thoroughly satisfying. (A nod is as good as a wink to a blind bat...)

MICHAEL
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I think I may have an answer

I think I may have an answer for you. For, truth be told, I am a tax attorney and one of my specialities in tax exempt organizations. The first thing that needs qualification is the entity. I assume it is U.C. Berkeley. If ti is the owner of the servers and the system, it is a tax exempt Section 501(c)(3) organization for which deductions may be taken pursuant to section 170(c) of the Internal Revenue Code of 1986, as amended.

Now, since the entity qualifies, what is the value of the contribution. Gifts in kind are tax deductible. Gifts of art, stock, motion picture film (See, Batjack Productions (John Wayne's company) v. Commissioner of Internal Revenue, U.S. Tax Court 1973). The gift of the dedication of the use of a computer would qualify as would the gift in kind of the energy used. However, this would only apply to U.S. individuals who itemized their taxes or to business entities, so long as it did not exceep 5% of their adjusted gross income.

Now, the donation of services, such as your personal labor, is not deducetible.

I know, you were just asking the time, and I am telling you how to build a clock.

Oh, the foregoing is applicable only to U.S. individuals, or to resident alients (curious choice of terms, don't you think) residing in the United States.

In addition the foregoing is a general statement and may not apply to your particular situation. You are encouraged to consult with your individual tax advisor. (That is my weasel language so that you know that I am attempting not to violate the ethics standards mandated by Circular 230 as promulgated by the United States Treasury Department.)

"We must be the change we wish to see."

Mahatma Gandhi

John Hunt
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Bruce Allen
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RE: The first thing that

Message 41971 in response to message 41969

Quote:
The first thing that needs qualification is the entity. I assume it is U.C. Berkeley. Ift it is the owner of the servers and the system, it is a tax exempt Section 501(c)(3) organization for which deductions may be taken pursuant to section 170(c) of the Internal Revenue Code of 1986, as amended.

In the case of Einstein@Home, the servers and systems were purchased with funds from the US National Science Foundation and are the property of the University of Wisconsin - Milwaukee.

Cheers,
Bruce

Director, Einstein@Home

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