BumbleBee 05:28 PM 06-18-2016
I am a for-profit business. A daycare parent recently cleaned out their garage and offered the toys to my daycare. In talking with the parent they claimed they could use the toy donation as a tax write off.
I did some googling because it didn't seem right. Am I correct in telling them that, in order to use the donation as a tax write off, it has to be donated to an IRS recognized non-profit charity?
To be clear, they have not given me the toys yet, simply asked if I wanted them.
Yes, to be a tax write off, it has to be to an IRS recognized non-profit charity. Also, there has to be a value to them, a number to use for taxes. I don't know how charities work for item donations. I've never gotten receipts for anything I've donated.
They could sell them to you for a good price and that way can make a bit from them.
If I'm correct, (Tom ?), if they are running some kind of business where it could be an expense, they could donate to you and write off the value as an expense, but I doubt they are running a business involving the toys.
TomCopeland 07:54 AM 06-20-2016
Parents can't claim a tax credit for donations to a child care program unless the child care program is a tax-exempt charity. That won't be true for family child care providers. Parents aren't running a toy business, so they can't deduct it as their own business expense either.
BumbleBee 06:17 PM 06-20-2016
Thank you Tom. That was my understanding just wanted to double check and make sure before I said anything to them.