Can I deduct donated eggs on my taxes?

redwing76

In the Brooder
9 Years
Mar 21, 2010
43
1
24
I'm not sure if this is the right place to ask this or not...but can I deduct my sale price for the eggs I donate to my local church when I do my taxes. Don't get me wrong...I will donate them anyway, but if I can deduct the price of the eggs, it would be a plus! What are your thoughts on this?
 

sheila3935

Songster
9 Years
Jul 10, 2010
2,827
33
181
Stonington, illinois
I believe you can but I would ask a tax expert. You can call the IRS they can let you know. Also I think you would need to get a reciept for the donated eggs to keep for your records in case of an audit.
 

woodmort

RIP 1938-2020
9 Years
Jul 6, 2010
3,524
978
301
Probably, keep carefully records and, if possible, get a receipt. If donating old clothes is deductible, eggs should be too. There is a dollar limit to this kind of donation however. Check the instructions for the return.
 

roverjohn

Chirping
9 Years
Apr 7, 2010
118
0
99
KCMO
Unlikely. Sell the eggs and then give the money to the church or deduct your production costs only. This is exactly the sort of 'deduction' that flags your return. I'll assume you are declaring all your profitable sales also? If not you are not donating anything that represents a loss.
 

woodmort

RIP 1938-2020
9 Years
Jul 6, 2010
3,524
978
301
Quote:
I disagree, you don't have to be in "business" to declare what a donated item is worth. However, it cannot be a monetary donation but a material one, like clothing donated to the Salvation Army. If you get a receipt as to value it should be declarable. On the other hand, theoretically, if you sell the eggs and donate the money you must declare the sale and file as a farm. I doubt that you want to go that far.

BTW, I believe if you donate veggies and get a receipt that is also allowable. Not to mention mileage to and from the donation site if you want to keep track of that kinda thing.
 

roverjohn

Chirping
9 Years
Apr 7, 2010
118
0
99
KCMO
Quote:
I disagree, you don't have to be in "business" to declare what a donated item is worth. However, it cannot be a monetary donation but a material one, like clothing donated to the Salvation Army. If you get a receipt as to value it should be declarable. On the other hand, theoretically, if you sell the eggs and donate the money you must declare the sale and file as a farm. I doubt that you want to go that far.

BTW, I believe if you donate veggies and get a receipt that is also allowable. Not to mention mileage to and from the donation site if you want to keep track of that kinda thing.

I'm going to disagree too because the Feds have decided in the last few years that you or the receiver CAN NOT just declare their own value which is what the OP wants to do. But, I'm guessing that neither of us are tax accountants so an expert opinion would be wise if the OP decides to do it. It really depends on what percentage of tax saving he realizes and whether or not it's worth the time to deduct money when he claims to be being charitable. If he dumped the eggs in the trash is there still a deductible loss at some arbitrary face value? I would think not but then I'm an engineer and not an accountant.
 
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Baralak

Songster
9 Years
Sep 12, 2010
1,289
11
141
West "By God" Monroe, La
ANY item of value donated to a Title 503 (c) (3) Not for Profit, or Exempt (which a church would qualify) would be considered a tax deduction. What you have to do is keep a record of how many eggs you donate, then attach a Value to them at the end of the year. Simply ask the church for a donation slip. Remember your eggs are worth MORE than store bought eggs due.

There are a lot of deductions that you can list in caring for chickens. If you itemize, you can classify them as Hobby Income (of course the cost outways the income) and show a loss if you have a loss. Figure out your total cost including your time it takes you to feed, clean up, collect the eggs. Feed cost, hay, coop upkeep, medication, Signage, egg cartons, ordering new chicks, loss of income due to brooding (how many eggs are sitting, not loss of eggs due to non laying). Now I'm not saying your gonna bank on it, but if you are honest, you can have a nice little deduction. For more information google hobby income, or visit :

http://www.ehow.com/how_2183916_hobby-expenses-hobby-income.html
 

Mac in Wisco

Antagonist
12 Years
May 25, 2007
3,479
81
256
SW Wisconsin
Quote:
The first part is correct. Get a receipt for your donation, determine fair market value for your donation, and use that amount as a charitable deduction just as if you had given a monetary donation. You can only claim the charitable deduction if you itemize your deductions on your tax return, rather than taking the standard deduction.


The second part is only partially correct. By IRS rules, you must report hobby income. Your costs are deductible as expenses to that income only. You cannot deduct your own time as a labor expense. (Your own time is generally the income producing part of it, and is taxable). You cannot report a loss and reduce your tax liability on other incomes.

This only works to the favor of the IRS. If, after your expense deductions, you show a profit then you owe taxes on that money. If you show a loss, your tax liability is zero for your hobby income. That loss cannot be used to reduce the amount of other taxable incomes.
 

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