What did you spend on CAP in 2010?

[RVT]

Thanks to Quicken I can report that in my case, during 2010 I spent:

$1,282.10 on Civil Air Patrol

$249.18 on Coast Guard Auxiliary (and I was actually more active)

And I joined both organizations in July, so thats only half a year.

[NCRblues]

I figure this every year now, since i write cap expenses off on some state and federal taxes...

2010's total came to $7,456....

To explain this a little, i am very active in a wing i do not live in. I drive 5 hours at a minimum to go to meetings and other functions. If its an encampment or function at wing HQ, add another 2.5 hours to that drive. I feed cadets and other members on my own dime when they cant afford to feed themselves AND attend the functions. So, i feel pretty good about this. 

[Defender]

Well, after all....CAP DOES stand for "Come And Pay"....doesn't it??

[peter rabbit]

only $1,862.01 plus 3618 miles at 14 cents/mile ($506.52) equals $2,368.53.

[RRLE]

14 cents/mile

Congrats on using the correct 2011 Mileage Rate. Very often, the incorrect business mileage rate of $0.51 is used. That rate can only be used by (paid) employees who are not reimbursed for mileage.

[GroundHawg]

More than I should have and less than I wanted to...

[jeders]

More than I should have and less than I wanted to...

As much as it pains me to do this, +1.

[arBar]

I joined in August, so in about 4 months I spent almost $400.00, most of which was on uniforms.  For my family that's alot of money, but its an investment.  Now I've got BDUs, golf shirt uniform, and aviator uniform.  Next time I go to overnight training (CLC, etc.) I won't have to wear the same clothes 2 days in a row.

[Phillip]

I was inactive for the first half of the year, so not a whole lot.  Off the top of my head, probably just a hair under $100 for a new golf shirt, new belt for my BDUs, and money for a squadron Dining Out.

[addo1]

A Lot.

$2,000 on summer activities (Encampment, COS, NBB, etc...)
$500 on CAP supplies
Hundreds of dollars on weekly squadron travel looking at 60 miles each direction...

Needless to say, my pocketbook feels it significantly. But when I think about how much more has been spent on me by CAP/USAF (COS, NCAC, etc), I am perfectly content.

[Eclipse]

Scratch pad says around $1600.

[TCMajor]

I started to calculate it, but then my wife came in the room and I had to eat the evidence.  Easily over $2000.00.

[IceNine]

This was a light year.  I basically didn't do anything fun.

I went to encampment, and drove a lot. No hotel stays, no conference or pd fees.  I might have spent $1200.

[Chicago_Pilot]

Ignorance in bliss.  I prefer not to keep tabs.

[Eclipse]

Not a deduction I am willing to sacrifice to mental health.

[PWK-GT]

What 'Chicago_Pilot' said :-)

I'm more worried about what the better half says...than the IRS.

[RADIOMAN015]

I spent just under $250.00.  66% of this was in direct support of my squadron (e.g. squadron quarterly dues).  It is likely I will spend about the same in CY 2011.  I don't plan on buying any uniforms, badges, etc and it is unlikely I will travel to the Wing Conference this year since it is about 3 hours away travel time and I don't want to spend the money to stay overnight.  I live very close to the squadron so travel expense is not a factor.

It's unfortunate that our so called "audited statements" don't better reflect with a specific foot note to the statements that most expenses at the squadron level are member funded.
RM   

[SABRE17]

when it comes to writing off CAP expenses, how do i go about writing them off, how much can I write off, and can i write them off federally as well as state? (live in commonwealth of Massachusetts fyi)

[Eclipse]

when it comes to writing off CAP expenses, how do i go about writing them off, how much can I write off, and can i write them off federally as well as state? (live in commonwealth of Massachusetts fyi)

The real answer is between you and your tax man.

Here is what the KB has to say about that.  See answers 283 & 73.

The deductibility of charitable contributions is discussed in detail in IRS Publication 526, Charitable Contributions.  See examples below from Publication 526 Charitable Contributions

Out-of-Pocket Expenses in Giving Services You may be able to deduct some amounts you pay in giving services to a qualified organization. The amounts must be: Unreimbursed, Directly connected with the services, Expenses you had only because of the services you gave, and not personal, living, or family expenses.

Conventions. If you are a chosen representative attending a convention of a qualified organization, you can deduct unreimbursed expenses for travel and transportation, including a reasonable amount for meals and lodging, while away from home overnight in connection with the convention. However, see Travel, later. You cannot deduct personal expenses for sightseeing, fishing parties, theater tickets, or nightclubs. You also cannot deduct travel, meals and lodging, and other expenses for your spouse or children.

Uniforms. You can deduct the cost and upkeep of uniforms that are not suitable for everyday use and that you must wear while performing donated services for a charitable organization.

Maintaining accurate records and retaining the documentation is the key to maximizing your deduction. Since everyone's tax situation is unique, you should seek competent tax counsel to apply the IRS guidelines to your specific fact situation.

From what I understand, if you don't itemize, you can't apply these expenses, however most homeowners itemize.
I work primarily for myself, part time as a rider instructor, and my professional and CAP equipment are complimentary and sometimes overlapping (computers, GPS, etc.).  In many cases when I buy something "big", I will apportion its use and value between buckets, or only write off a portion of total cost.

Some things I am comfortable listing as deductions:

100% of uniforms which are only CAP use.

100% of equipment which is only CAP use (24 hour gear, flight headset, aero charts, etc).

100% of dry cleaning and other upkeep of uniform parts which are CAP only use.

100% of motel, etc., for CAP activities.

Non-reimbursed  mileage and other travel expenses to CAP activities.

Some meals during activities (not all).

A portion of my cell phone use related to CAP.

CAP use of a broadband card or other similar service may also be deductible.

Pilots who do flight training or incur other expenses specifically for CAP may well be able to write off some of that money.

Since I am itemizing anyway, these receipts are just more on the pile.  While some people are very aggressive in their deductions, I am purposely conservative, primarily for ethical reasons, but also as a buffer should I ever be audited.  I don't list anything I would not be comfortable demonstrating CAP or business use of in front of a hearing officer or judge, and I have a fair amount of non-listed receipts to produce should some expenses be disallowed during an audit.  This costs me money, but helps me sleep at night.

This is what I and others in my circle do.  I am not a tax person or lawyer.  If you cite this thread in your audit hearing they will laugh at you and so will I.  Consult with your preparer or spend time with the regulations if you self-prepare.

[SarDragon]

when it comes to writing off CAP expenses, how do i go about writing them off, how much can I write off, and can i write them off federally as well as state? (live in commonwealth of Massachusetts fyi)

I used to do taxes professionally, but am not familiar with the Mass. tax laws, so can only give you very general guidance on their deductions.

Federal - you need to have income. Deductions offset income. Since you are a cadet, you are probably claimed as a dependent on your parents' return, and cannot itemize deductions on your own tax return.

Your parents might be able to itemize, and include your expenses, if they have enough itemized deductions to exceed the standard deduction.standard. The key to this is generally home ownership.

State - most states use the federal itemized deduction, with occasional differences based on the state tax laws, where something the feds allow isn't allowed by the state.

Good luck, and work on those writing skills some more. It will make folks more willing to help you out on here.

[SABRE17]

Very well, thanks for the advice gentlemen, Ill talk to my dad about what is what, I haven't really kept tabs for last year other then the supplies I ordered from vanguard last year. Like wise I shall consult my higher command

[RRLE]

100% of uniforms which are only CAP use.

You have to be very careful with uniform items. In the event of an audit, the IRS will not care if you only wear the uniform item during CAP activities. The IRS will only care if the uniform item could be worn outside of CAP. For example, you might only wear your black dress shoes with your CAP uniform. However, black dress shoes can be worn as normal attire. Since they could be worn outside of CAP then they are not deductible. Dress pants and some shirts fall into the same category. Unless there is something distinctive about the uniform, ie a stripe down the pants leg, then the uniform item will not be considered distinctive and not deductible. Shirts can often pass the test since they often have embroidery on them that makes them a distinctive part of the uniform.

100% of equipment which is only CAP use (24 hour gear, flight headset, aero charts, etc).

You can have a different tax issue here, especially if you are a pilot and fly outside of CAP. All of the items listed can be used outside of CAP and the IRS could disallow the deduction. Most of the 24 hour gear, I'm assuming, ground team stuff, can also be used outside of CAP and might be disallowed by the IRS under audit. That would be especially true if you also use the gear for hiking, camping or anything else outside of CAP.

The deductiblity of uniforms and gear is not as clear cut as many think. Very often it depends if you win or loss the audit lottery.

[Eclipse]

I don't agree with your assertion(s), but FWIW the IRS regularly disavows lots of things, and also accepts lots of things most people would not agree with.

There isn't a single piece of clothing worn by CAP members that can't, theoretically, be worn elsewhere.  That doesn't change their deductibility.

I am also not a pilot, so therefore flight equipment is 100% useless to me outside of CAP.

What we need to be very careful of is making statements that potentially discourage members from taking advantage of this very important benefit.

YMMV, consult your tax guy, and act within your personal ORM.

[RADIOMAN015]

I don't agree with your assertion(s), but FWIW the IRS regularly disavows lots of things, and also accepts lots of things most people would not agree with.

There isn't a single piece of clothing worn by CAP members that can't, theoretically, be worn elsewhere.  That doesn't change their deductibility.

I am also not a pilot, so therefore flight equipment is 100% useless to me outside of CAP.

What we need to be very careful of is making statements that potentially discourage members from taking advantage of this very important benefit.

YMMV, consult your tax guy, and act within your personal ORM.

Well frankly overall the membership needs to be aware of costs and demand that ANY function, uniform changes, etc be very reasonable in cost.  In fact that's why we need NO changes in uniforms for a few more years.  It's interesting that some wings can actually run a wing conference that will cost less than $100.00 for everything and other are out of sight in costs ($300+ for attendance).  Also driving to meetings/training at wing etc, much of this can be done via telephone/computer type conferencing to save the member both time and money.

As far as the IRS and allowing deductions, there's a lot of things that can get people audited including out of line ratios of net taxable income to gross income (as well as the charity deduction in relation to gross income).  Frankly I see CAP more as a "hobby" type activity  and if someone is getting too far out of line with questionable deductions, at the very least I would hope that the IRS would make them sweat a bit.  Again this isn't about taking tax deduction but is more along the lines of controlling your volunteer costs. 
RM 

[RRLE]

There isn't a single piece of clothing worn by CAP members that can't, theoretically, be worn elsewhere.  That doesn't change their deductibility.

Then you have a big problem and not with me, with the IRS.

IRS Pub 526 Charitable Contributions. See page 5, pdf page 6.

Uniforms. You can deduct the cost and upkeep of uniforms that are not suitable for everyday use and that you must wear while performing donated services for a charitable organization.

Note this is a two part test. The uniform cannot be suitable for everyday use and it must be required to wear while on duty. The actual use or non-use of the item by the member has no part in the test. So black dress shoes would never be deductible. Nor would any other uniform item that is capable of everryday use.

Also see the uniform question in Table 2 at the top of the same page.

A 2009 Tax Court Moujahid TC Memo 2009-42 decision added a 3rd test:

Expenses for uniforms are deductible if the uniforms are of a type specifically required as a condition of employment, the uniforms are not adaptable to general use as ordinary clothing, and the uniforms are not worn as ordinary clothing.

If any one of the three tests is not met then the expense is not deductible. The case involves a deduction for unreimbursed employee expenses but the rules and regs in the tax code for deducting unreimbursed employee uniform expenses mirror those for volunteer uniform expenses.

The other items mentioned would probably be disallowed as personal expenses. On the same page as the above is the following.

Out-of-Pocket Expenses in Giving Services

Although you cannot deduct the value of your services given to a qualified organization, you may be able to deduct some amounts you pay in giving services to a qualified organization. The amounts must be:
· Unreimbursed,
· Directly connected with the services,
· Expenses you had only because of the services you gave, and
· Not personal, living, or family expenses.

Table 2 contains questions and answers that apply to some individuals who volunteer their services.

The expenses must pass all 4 parts of that test. And most the gear mentioned may be disallowed under the 4th test. If there was any private use at all then the 3d test is failed as well.

And FWIW - I am enrolled to practice before the IRS. I handle audits on a weekly basis. Charitable contributions will usually come up in a correspondence (mail) audit. If the IRS finds anything to question on Schedule A, it will almost certainly ask for the documentation of charitable contributions. The burden of proof is on the taxpayer, not the IRS to substantiate the deduction. Once the IRS sees things like shoes, pants, shirts etc on a receipt then you should fully expect a follow letter that either disallows the deduction or asks for further proof that the item is not suitable for everyday wear. That proof would normally have to be a photograph. And items of clothing that do not show a distinctive uniform element are going to be disallowed.

[SABRE17]

So... for future reference, what would be considered unsuitable for everyday wear? insignia, ribbons, name tapes, breast badges, specialty badges, flight caps, officer covers. right?

I'm sure other members are watching this with similar questions hence why I ask.

And when it comes to services, could i write off the fuel receipts from missions if I don't get that reimbursed, as well as the miles I drive to and from meetings?

What if I bought food for a bivouac could i write that off too?

[SarDragon]

If you want to write off direct auto expenses, you must use that method exclusively (no part mileage, part expenses), and keep good records. Dates, receipts, etc.

[peter rabbit]

And when it comes to services, could i write off the fuel receipts from missions if I don't get that reimbursed, as well as the miles I drive to and from meetings?

What if I bought food for a bivouac could i write that off too?

SarDragon is correct - you can't write off part of your auto expense as mileage and part as direct expenses - except for tolls and CAP-related parking expense which can be added to the 14 cents/mile. I keep a mileage log showing date, purpose of the trip, and miles.

I also deduct food and other direct costs while away from home on CAP business, all items from Vanguard since what I buy from them is not suitable for general wear, plus plane and fuel costs for my CAP training and proficiency. Since I don't fly except for CAP, there are other flying expenses directly attributable to that training.

One thing I've been forgetting is laundry costs for uniform items.

[RRLE]

what would be considered unsuitable for everyday wear? insignia, ribbons, name tapes, breast badges, specialty badges, flight caps, officer covers. right?

Correct. Also any uniform item, most likely shirts and jackets, with permanent patches (sewn on or embroidered) that CAP only permits for duty status. A bomber jacket loaded with CAP badges that you can wear socially, with no official CAP repercussions would not qualify.

Another Bright Line test - if CAP encourages you to wear an item for social wear then it is not deductible.

[Eclipse]

Another Bright Line test - if CAP encourages you to wear an item for social wear then it is not deductible.

What does CAP encourage you to wear for social wear?  Certainly not uniform parts.

Again, I think the key here is discussing your tax person or accountant and being comfortable with your strategy.

[mclarke]

I believe I spent close to 300 or 400 last year... Them air shows get costly lol...

This year however, I am looking at around 4000 (2 of  each uniform, USAF style and CAP distinctive), including GTM hear and some added GTM gear... oh welll.