Joe Smith paid $500.00 to attend a fund raiser for a qualified charity 100 miles from home. He purchased a painting at a silent auction for $1000.00. The fair market value of the painting was $250.00 and the dinner was $50.00. While there he met the governor and contributed $500.00 to the governor’s re-election campaign. How much can Joe claim as a charitable contribution deduction? Why?
2007-01-02 09:27:08 · 3 answers · asked by bueyes67 2 in Business & Finance ➔ Taxes ➔ United States
If Joe is throwing money around like that, and giving so much money to politicians, he's probably working under the table, and therefore has no tax deduction.
2007-01-02 09:33:38 · answer #1 · answered by Denise T 3 · 1⤊ 0⤋
$1,200; $450 out of the $500 for the dinner $500 - 50 fmv = 450; $750 out of the $1,000 paid for the painting; $1,000 - 250 = 750. Political contributions are not charitable deductions
2007-01-03 02:57:07 · answer #2 · answered by mattapan26 7 · 0⤊ 0⤋
For the dinner: $500.00 - $50.00 = $450.00.
For the painting: $1000.00 - $250.00 = $750.
Contribution to the governor is not deductible.
Total: $450.00 + $750.00 = $1200.00
2007-01-02 19:10:37 · answer #3 · answered by STEVEN F 7 · 2⤊ 0⤋