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To: MNDude

California would likely have a problem getting a 501c3 charitable tax exemption certificate from the IRS.


20 posted on 01/05/2018 7:08:54 AM PST by Presbyterian Reporter
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To: Presbyterian Reporter

“California would likely have a problem getting a 501c3 charitable tax exemption certificate from the IRS.”

That wouldn’t help them anyway.

The contribution wouldn’t be tax deductible because the contributor gets a benefit in exchange for the contribution.

This is from the instructions for Form 1040 Schedule A, where itemized deductions are claimed:

“If you made a gift and received a benefit in return, such as food, entertainment, or merchandise, you can generally only deduct the amount that is more than the value of the benefit.”

A dollar-for-dollar reduction in state tax, in exchange for the contribution, is CLEARLY a benefit. The whole contribution is nondeductible.

Publication 526 has more details, but the rule is clear.

https://www.irs.gov/pub/irs-pdf/i1040sca.pdf
https://www.irs.gov/pub/irs-pdf/p526.pdf


68 posted on 01/05/2018 8:11:25 AM PST by Jordo
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