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Author: fleg9bo Big funky green star, 20000 posts Top Recommended Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 120809  
Subject: Charitable deduction question Date: 1/31/2012 1:10 PM
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In 2011 I purchased an airplane ticket for a February 2012 trip to do volunteer work with an IRS-approved non-profit group and I promise not to have fun while I'm doing it, so the deductibility of the trip will be legit.

Since the trip hadn't yet happened in 2011, can I take the deduction for the plane ticket that year? Or should I wait until the trip actually takes place and take all the deductions for it in 2012?

--fleg
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Author: irasmilo Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 114795 of 120809
Subject: Re: Charitable deduction question Date: 1/31/2012 1:17 PM
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In 2011 I purchased an airplane ticket for a February 2012 trip to do volunteer work with an IRS-approved non-profit group and I promise not to have fun while I'm doing it, so the deductibility of the trip will be legit.

Since the trip hadn't yet happened in 2011, can I take the deduction for the plane ticket that year? Or should I wait until the trip actually takes place and take all the deductions for it in 2012?


As a cash basis taxpayer, I would take the deduction in 2011. However, should you not take the trip, any money you recover for the ticket will be 2012 income.

Ira

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Author: fleg9bo Big funky green star, 20000 posts Top Recommended Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 114796 of 120809
Subject: Re: Charitable deduction question Date: 1/31/2012 1:23 PM
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should you not take the trip, any money you recover for the ticket will be 2012 income.

If the trip doesn't happen, why not amend 2011 to remove the deduction?

--fleg

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Author: TMFPMarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 114800 of 120809
Subject: Re: Charitable deduction question Date: 1/31/2012 1:48 PM
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If the trip doesn't happen, why not amend 2011 to remove the deduction?

Because whatever Congress, approved by whatever President, is the Mommie, and Mommie said so. See "Recoveries" in Pub 525 for the income side. There's no doubt publication coverage of accounting methods somewhere, but as Ira said, for a cash-basis taxpayer, you take the deduction in the year you paid or charged it.

Phil
Rule Your Retirement Home Fool

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