Recreational vehicle purchase for volunteer work tax deduction?

Question

I want to buy a RV and will use it 100% for volunteer activities. Can I write it off as an expense. I want to deduct the full purchase price or maybe depreciate it. If not, can I incorporate as a private non-profit and then deduct it that way?

Answer 1

The IRS is not going to be pleased about this if you deduct the full purchase of your RV. They will think you're stealing from them.

Only if you come up with at least 2 percent in extra deductions out of your pocket. This will account for your supplies, the equipment that you will use, the food, mileage, or other extra-curricular activities your volunteering work needs. You are actually creating a business this way.

If the business is for non-profit, then more of your monetary proceeds will go to your cause and can get written as a write off. You also have to pay tax too if you are only giving 10 percent to your volunteering cause and the rest of the 90 percent is given to you.

You can open barbecues in front of grocery stores for your volunteer work, like they did for the Hurricane Katrina victims. That’s what they always do in front of Walmart in Kona, Hawaii. This will help pay your monthly expenses on your RV.

Answer 2

Out of pocket expenses for volunteering can be eligible charitable deductions for a volunteer in addition to mileage, but buying an RV and claiming it as used totally for charitable purposes would be waving a red flag in front of the IRS, so be prepared to substantiate both its use and that it's necessary, not just something fun for you to do with the participants.

Answer 3

No. You can take a mileage deduction of .14 per mile for charitable use of a personal motor vehicle but that's all.

You could form a charitable non-profit but that won't get you any kind of a deduction on your personal return other than money that you donate to it. The costs of setting that up and the regular reporting requirements may not be worth any deduction you might get, however. And be prepared for the IRS to take a VERY close look at this as it's not an "arms length" transaction.