Tax Write-Offs?

Question

Since a donation is considered a tax write-off then a scholarship given from a private party should also be considered in the same manner. This being said...does anyone need a to make a donation? If so it could be sent directly to my university :D

Answer 1

Charitable contributions on an individual are not deductible on the Federal Tax return

Answer 2

Only donations made to a non-profit organization that has been recognized by the IRS are deductible. If a person donates money to a university for a scholarship, that would be considered a charitable contribution if the school was recognized as a non-profit. Many schools do set up non-profit organizations at the school just for this purpose. However, the donor does not have option to specify which particular student the scholarship is awarded to. So if someone were to make a donation as a scholarship on your behalf, that would not be a deductible charitable contribution. Now if you were receive a 503(c) designation, then the donor can contribute the money directly to you.

Answer 3

Under Section 280A(a), there is a general disallowance for allowing the deduction of a portion of the costs associated with your dwelling. However, under 280A(c)(1), this rule is excepted if the portion of the residence being deducted is used exclusively: (1) As the taxpayer's principal place of business; (2) As a place of business used by patients, clients, or customers when visiting the taxpayer in the normal course of business; or (3) Is a separate structure not attached to the dwelling that is used in connection with the trade or business When making a determination about whether or not the use qualifies for a deduction, the tax court will consider the following factors under Popov (a leading case in the area): (1) The relative importance of the activities performed at home and elsewhere; and (2) The amount of time spent working at home and elsewhere Also, a home office qualifies as a principal place of business if it is used to conduct administrative or management activities of the taxpayer’s trade or business and there is no other fixed location where such administrative or management activities can be performed ***NOTE*** Although this is the legal standard, be aware that this is a RED FLAG for the IRS. You are essentially begging for an audit if you claim this deduction and don't also have your own business.

Answer 4

Donations for scholarships are a bonafide write-off for the contributor(s.) The problem is that you lose control of the scholarship in order to qualify. Conceivably, the grantor could develop a scholarship that only a remote few might qualify for and that fewer would apply for. For example Mr. Smith decides that he would like to make a one time or maybe 5 time contribution to the University of Lower Slobovia in the amount of $20000 per year for one student who is studying taxidermy and is the eldest son of a colorblind pharmacologist.

Then the university would choose the best qualified taxidermy applicant who happened to have a colorblind pharmacist for a dad. It might be difficult to get the university to accept such a contribution, though.

Answer 5

You can ask for gifts. Gifts are not deductible by the giver, but it is not taxable to the receipient either.

Answer 6

Relax, he's just joking around.
:)

Answer 7

Nice try, but it won't fly.

Answer 8

yeah ...... right!