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 Last week, we had this question about donating blood: » From: Durham, NC Dear TaxMama, I donated blood to the Red Cross 6 times in 2002. I know I can't deduct the value of my time but can I deduct the value of the blood? Red Cross sells my blood for $85-$250/unit. Thank you. Larry » See TaxMama's Reply (which was wrong) <A Tax Pro Responds> Hi TaxMama: Regarding the question about the deductibility of blood donations to the Red Cross in your last news letter. No, No deduction is allowed. See page 168, lower left under Value of Time and Service of IRS Pub 17 where it says: "You cannot deduct the value of your time or services including: Blood donations to the Red Cross or to blood banks,and..."Best wishes. Fred W. Fetner, Jr. Retired IRS Agent Fetner's Tax Service Rock Hill, S. C. 29732-1510 wyse@cetlink.net <Another Pro Provides a Suggestion - if you're selling the blood> Larry from Durham, NC, asked about blood donations. There is a somewhat related case where a taxpayer with a rare type sold blood, reported the income, and was allowed to deduct the cost of special food and nutrional supplements to effectively fortify and replenish the blood supply in so far as those costs exceeded costs of normal food!!! Steve Odem odem@concentric.net <Another Pro has a creative approach> Per Rev Rul 162 and several cases, a donation of blood is merely a rendition of services rather than a gift of property and is therefore not deductible. Even without this Rev Rule, at best it would be a gift of short term capital gain property or self produced property, since your blood is replaced in your body frequently(I don't have time to look this up) and the contribution deduction would thus be limited to basis. Only long term capital gain property gets the benefit of a Fair Market Value charitable deduction. Nikki Sandars, CPA, EA American Express Tax and Business Services Los Altos, CA 94022 nikki.x.sandars@aexp.com  |
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