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I guess this gets into "our hours of work are not worth anything." It's the same with web design. For example, if I do a web site for someone and they refuse to pay me at the end, I cannot write that off as a loss. If I host a web site and the client doesn't pay me, I can't write that off as a loss either, even though it's essentially the same as rent.
One year when things were slow around Xmas, I decided to do a web site for the Portrait Society of Atlanta at no charge. I knew they needed one and that they could not afford to pay someone. I had to get a statement from them saying I donated a web site in order for it to be deductible. I couldn't deduct the value of my hours. The whole thing is ridiculous and illogical.
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