Tax implications of Motorcycle Charity Events

tdragger

tdragger

Premier Member
IBR Finisher
#1
#1
Since many of us participate in various motorcycle oriented charity events, can our expenses be considered tax deductible? For example, $20 of the Tour of Honor registration fee goes to the specified charities. The $20 is clearly deductible. However, what about our fuel and lodging costs to participate?

I guess the same would apply to Hoagy's run in June. Or a local charity poker run.

If there are any tax gurus on the board, maybe you can take a shot at answering this, please?
 
RoadDust

RoadDust

Member
#2
#2
  1. You must volunteer to work for a qualified organization. Ask the charity about its tax-exempt status. You can also visit IRS.gov and use the Select Check tool to see if the group is qualified.

  2. You may be able to deduct unreimbursed travel expenses you pay while serving as a volunteer. You can’t deduct the value of your time or services.

  3. The deduction qualifies only if there is no significant element of personal pleasure, recreation or vacation in the travel. However, the deduction will qualify even if you enjoy the trip.

  4. You can deduct your travel expenses if your work is real and substantial throughout the trip. You can’t deduct expenses if you only have nominal duties or do not have any duties for significant parts of the trip.

  5. Deductible travel expenses may include:
    • Air, rail and bus transportation
    • Car expenses
    • Lodging costs
    • The cost of meals
    • Taxi fares or other transportation costs between the airport or station and your hotel
To learn more see Publication 526, Charitable Contributions. The booklet is available at IRS.gov or by calling 800-TAX-FORM (800-829-3676).
 
RoadDust

RoadDust

Member
#4
#4
Read items 1-4 from above.

Participating in a motorcycle oriented charity event that is sponsored by a qualified organization is not the same as volunteering to work or performing services for a qualified organization.

If you are only participating in the event your expenses are not deductible. If you are actually serving as a volunteer and working on behalf of the organization in putting on the event, your expenses MAY be deductible.

Generally speaking, you would be participating in the event for the significant element of personal pleasure, recreation or vacation in the travel. Therefore, no deduction.

You can only deduct your travel expenses if your work is real and substantial throughout the trip. You can’t deduct expenses if you only have nominal duties or do not have any duties for significant parts of the trip.

Per diem rates do not apply for charitable deductions. Actual expense or the standard charitable mileage rate may apply if you actually performed work or services for the organization.

IRS Publication 526 will give you a very good explanation on charitable donations.
 
cacomly

cacomly

Premier Member
IBR Finisher
#5
#5
RoadDust said:
Generally speaking, you would be participating in the event for the significant element of personal pleasure, recreation or vacation in the travel. Therefore, no deduction.
Click to expand...
Well, since the general public thinks those that ride like we do are crazy and cannot possibly enjoy it perhaps it is possible to claim there is no significant level of pleasure :)

Well, maybe not, but I tried ...
 
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