News - Details
Tax Deduction Not Allowed for Donating Use of Vacation Home
You generally cannot claim a charitable deduction for a donating the use of your vacation home to a charity action or raffle.
Back to News
The IRS says that a gift of the right to use your property isn’t a gift of your entire interest (entire interest is required for a tax deduction); therefore, despite your generosity, the donation is nondeductible.
Additionally, if you rent out the vacation home when you’re not using it, this one-week period will count as personal use. This may reduce your rental property deductions. Ask your accountant.
Note that when a vacation home stay is auctioned off to the highest bidder, the winner’s deduction is limited to the excess above fair market value.