Are Blood Donations Deductible?

Dear Tax Talk,

Are blood donations tax-deductible for volunteer donors?
-- Ann

Dear Ann,

While many people are fond of saying that the IRS is sucking the blood out of them, in reality the IRS prefers cash. The same is true for charitable contributions: Cash talks, blood doesn't.

Blood isn't the same as a bag of clothes you give to the Salvation Army. With clothes, you have basis in the assets donated and hence, that makes the contribution deductible. With blood, there is no basis and hence, no deduction. If you sell blood, the sale is considered income.

Similarly, the value of your time is not tax-deductible, because there is no basis or cost in your time. In order to have basis, you would have had to earn income and donated that instead. Recognizing the earned income and the corresponding deduction results in a zero tax position, the same as if you had just volunteered without pay or tax deduction.

You can deduct unreimbursed out-of-pocket expenses, such as the cost of gas and oil that are directly related to the use of your car in giving services to a charitable organization. You cannot deduct general repair and maintenance expenses, depreciation, registration fees, or the costs of tires or insurance.

If you do not want to deduct your actual expenses, you can use a standard mileage rate of 14 cents a mile to figure your contribution. You can deduct parking fees and tolls, whether you use your actual expenses or the standard mileage rate.

To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. Taxpayers should seek professional advice based on their particular circumstances.

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