Parent Wants to Donate Toys and Use It as A Tax Write Off

[BumbleBee]

I am a for-profit business. A daycare parent recently cleaned out their garage and offered the toys to my daycare. In talking with the parent they claimed they could use the toy donation as a tax write off.

I did some googling because it didn't seem right. Am I correct in telling them that, in order to use the donation as a tax write off, it has to be donated to an IRS recognized non-profit charity?

To be clear, they have not given me the toys yet, simply asked if I wanted them.

[Mike]

Yes, to be a tax write off, it has to be to an IRS recognized non-profit charity. Also, there has to be a value to them, a number to use for taxes. I don't know how charities work for item donations. I've never gotten receipts for anything I've donated.

They could sell them to you for a good price and that way can make a bit from them.

[Mike]

If I'm correct, (Tom ?), if they are running some kind of business where it could be an expense, they could donate to you and write off the value as an expense, but I doubt they are running a business involving the toys.

[TomCopeland]

Parent donations

Parents can't claim a tax credit for donations to a child care program unless the child care program is a tax-exempt charity. That won't be true for family child care providers. Parents aren't running a toy business, so they can't deduct it as their own business expense either.

[BumbleBee]

Thank you Tom. That was my understanding just wanted to double check and make sure before I said anything to them.