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11 November, 10:26

Emily, who lives in Indiana, volunteered to travel to Louisiana in March to work on a home-building project for

Habitat for Humanity (a qualified charitable organization). She was in Louisiana for three weeks. She normally

makes $500 per week as a carpenter's assistant and plans to deduct $1,500 as a charitable contribution. In addition,

she incurred the following costs in connection with the trip: $600 for transportation, $1,200 for lodging, and $400 for

meals. What is Emily's deduction associated with this charitable activity?

a. $600

b. $1,200

c. $1,800

d. $2,200

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Answers (1)
  1. 11 November, 10:32
    0
    D) $2,200

    Explanation:

    The IRS does not allow individuals to deduct time spent as a volunteer from their gross income, volunteers can only deduct certain expenses related to the activity.

    The only things that Emily can deduct for this charitable activity are transportation costs, lodging costs and meals:

    Emily's deduction = $600 + $1,200 + $400 = $2,200
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