another tax ?. Donating sides of beef

We donated (4) 1/4 beefs for a sick young mans benefit, and also a 1/4 for another benefit for a person that had some severe head trauma. In both cases the 1/4's were auctioned or raffled off. How do I enter that, is it even deductable under donations? Going through the papers I dont even thing we recieved any paperwork from either benefit coordinators.

No you cannot deduct it.

Here is my reason. If it was cash you donated you would have paid tax on the income of those steers.

You will save the tax that the income from the steers would have created if they would have been sold.

So in a way you saved tax and can deduct the cost of feeding those steers.

Gary

differing opinion here.

Yes you can deduct the fair market value of any charitable donation. But, in the event of an audit, a receipt is needed.

Also, if you don't sell the beef, you can't deduct the cost of feed as only the cost of feed for income generation is deductible. Same as any business. Production costs are deductible.

Real world, nobody is gonna look that close unless you're in a world of trouble anyway.

Check with your tax accountant. Because I think our treasurer has given receipts to people for non-cash donations at church... she has worked at a tax office and is a mathmetician as well, so she is very particular about numbers and receipts, etc. Though it may be something that is applicable only to a "state registered non-profit" organization. And fairly sure that someone doing a fundraiser for a person in need would not go through the steps to set up as a non-profit organization.

It is deductible IF it was made to a "qualified organization" and if other requirements are met. The requirements are laid out in IRS Publication 526.

Regarding receipts:

"If you make any noncash contribution, you must
get and keep a receipt from the charitable organ-
ization showing:
1. The name of the charitable organization,
2. The date and location of the charitable
contribution, and
3. A reasonably detailed description of the
property."

Note that just because an organization is charitable does not automatically mean it is "qualified" or that your donation is deductible.
IRS Publication 526

It is common practice for farmers to donate grain to there church. You cannot deduct the price of the grain from taxes for the donation.

But may you save more in not having the income than what the income you missed out on depending on which tax bracket the less income will put you in.

Check with your Accountant.

Gary

I think the real answer here is to determine what organization ran the benefit. If it was run by a church or the local VFW, then you might be able to contact them for a receipt. The key here is whether they have filed the paperwork to be a 501 C3 charitable organization. I am the treasurer of such an organization, and do the annual paperwork to keep the registration alive, so we are listed as a "qualified organization". Many schools, historical societies, PTA organizations, VFWs, and thousands of groups have done this registration and are then qualified to receive donations, and provide receipts that are tax deductable. Sometimes the local bank will set up a charitable fund, and register it for the tax break.

But I too have donated a quarter beef to a needy family, and there was no charitable organization involved, so there was no deduction that I could claim. But I still felt good about helping out a family in our community. Often times we can contact our church, make the donation to the church with a note that it is to go to a specific needy family. We can then get a receipt for the donation from the church, and it is deductable.

Another issue could be if you raised the beef or bought it. If you bought it, then the question about the charitable organization applies. But if you raised it, you might have trouble determining the amount to deduct, as you have probably already deducted the cost of feed, supplements, and vet that went into that steer. Then the question of charitable organization applies.

Whatever the tax outcomes are, you can feel good about you (and your wife's?) contribution to a needy family. Thank you for being a good and giving community member!

Paul in MN

I agree---he received no income from it, but the cost of raising it, including purchase price of a feeder calf, is a legitimate deduction, Same thing if the feeder had died.

No receipt, no deduction, period.