Guest Friday's Answer: Are Building Fees Tax Deductible?

We're excited to bring you leadership wisdom from wonderful veteran leaders around the country in our "Guest Friday's Answer."

This month's guest post is by the Homeschool CPA Carol Topp. Carol is also the author of Homeschool Co-ops: How to Start Them, Run Them and Not Burn Out.

Carol has been an abundant blessing to us here at Homeschool Group Leader with her knowledge and eagerness to help, and we know she will be to you as well. ~Kristen and Denise

Our homeschool group is a 501c3 organization. We currently collect an annual membership fee and a building use fee that the church we operate in charges us. Are either of these fees tax deductible? If not, can our members donate money for us to use toward the building use fee?

Excellent question! Christian schools and other private schools deal with this type of question all the time. Your program and building fees are not tax deductible donations. They are payments for services.

Any amounts over and above the required fees is a tax deductible donation if no goods or services were received.

Here's more if you care to read about it...
http://taxes.about.com/b/2005/03/21/tax-deduction-for-private-school-questions-from-readers.htm

Carol Topp, CPA