INFO: CAP Deductions on Income Taxes

The U.S. Civil Air Patrol is a 501(3)c non-profit corporation. Volunteer members may deduct certain expenses from their income taxes.

Here are some excerpts from IRS Publication 526, Charitable Contributions:

• Out-of-Pocket Expenses in Giving Services

You may be able to deduct some amounts you pay in giving services to a qualified organization. The amounts must be unreimbursed, directly connected with the services and expenses you had only because of the services you gave, which are not personal, living or family expenses.

• Conventions

If you are a chosen representative attending a convention of a qualified organization, you can deduct unreimbursed expenses for travel and transportation, including a reasonable amount for meals and lodging, while away from home overnight in connection with the convention. However, you cannot deduct personal expenses for sightseeing, fishing parties, theater tickets or nightclubs. You also cannot deduct travel, meals and lodging and other expenses for your spouse or children.

• Uniforms

You can deduct the cost and upkeep of uniforms that are not suitable for everyday use and that you must wear while performing donated services for a charitable organization.

Maintaining accurate records and retaining the documentation is the key to maximizing your deduction. Since everyone’s tax situation is unique, you should seek competent tax counsel to apply the IRS guidelines to your specific situation.

The following is quoted from IRS Revenue Ruling 58-279. (1958-23 IRB 12 will have meaning to your tax advisor)

"Held, since the organization [CAP] is a qualified donee under section 170(c) of the [Internal Revenue] Code, the taxpayer may, to the extent of the limitations prescribed in section 170, deduct the nonreimbursed, out-of-pocket expenses directly attributable to the performance of such volunteer services, such as those incurred by the taxpayer for the operation, maintenance, and repair of a personally owned aircraft, automobile, communication system, and telescope, as well as those similarly incurred for the purchase and maintenance of distinctive uniforms which the taxpayer is required to wear while engaged in the official Civil Air Patrol activities and is prohibited from wearing except on such occasions. Such expenses are deductible as contributions "for the use of" that organization. Only those expenditures incurred for operation, maintenance, and repair, which are directly attributable to the use of such aircraft, automobile, communication system, and telescope in performing gratuitous services for such organization are deductible. No deduction is allowed for a proportionate share of general maintenance or general repairs of such equipment.. Held further, the foregoing principle is not extended to allow a deduction either for the fair rental value of such use, or for the depreciation occasioned by such use, of the aircraft, automobile, communication systems, or telescope, in performing volunteer services for the organization. … Furthermore, since liability and property damage insurance carried on a motor vehicle is for the protection of the individual, the premiums paid on such insurance do not qualify as an expense attributable to the use of a vehicle and, consequently, cannot be considered a contribution or gift within the meaning of section 170 of the Code."

As always, your personal tax advisor should be contacted to determine how this ruling applies to your individual facts and circumstances.

The deductibility of charitable contributions is discussed in detail in IRS Publication 526, Charitable Contributions.