It’s nice to have something to contribute when your favorite charity has a fundraiser. Why not a stay in your vacation home? Alex and Heather Chapman, co-founders of www.rentbyownerguide.com, have done it. But, says Alex, although “we’ve been pleased with how much money our donation has helped raise, there are complications and risks to consider.”
- You have to accept the people with the highest bid for your home, without the usual screening. That’s why Alex and Heather donate in an auction with people they already know.
- Unlike cash donations, neither you or your guest can take a tax deduction, the way you would be able to if you had donated cash. (IRS Publication 526)
- The stay might affect what rental expenses you can deduct on your tax return because it counts as “personal use.” (IRS Publication 527)
- Even though you will not receive rent or a tax deduction, you will still have your ordinary rental expenses: cleaning, utilities, and so on – not to mention the risk of damage
Have you ever donated your home for a charity event? Would you do it again?