Charitable Contributions
Learn the decision pattern the exam can test, then apply it to a realistic taxpayer fact pattern.
What changes the answer?
Donated services are not deductible, although certain unreimbursed expenses connected with those services may be.
A tax-practice scenario
A volunteer donates time, drives for a charity, and gives appreciated stock. Classify each item and its substantiation separately.
Identify the taxpayer, entity, transaction, and tax period first. Write the controlling tests in order, apply only the relevant facts, and keep the reporting result separate from any planning recommendation.
Do not take this shortcut.
Using the donor's estimate without checking appraisal, acknowledgment, or property rules.
Turn the rule into recall.
Practice with a four-column log: recipient eligibility, property type, value rule, and required evidence.
- ExplainState the governing distinction without notes.
- ApplyChange one fact in the scenario and predict the new result.
- RetrieveAnswer an unseen question, then review every option.
Official source and scope
This lesson follows the current PSI content outline and uses the IRS reference below for the underlying tax or practice framework. Always confirm current forms, instructions, thresholds, and effective dates before advising a taxpayer.