what does tax deductible vacation mean?

Question

I am planning to go on vacation and found that buying airfare ticket through a nonprofit organization is tax deductible. the organization does not sell the ticket but they partner with a traveling agency to raise funds for their cause. so what does the cost of the ticket mean? i travel for free or what?

Answer 1

audit

Answer 2

I have never heard of this scenario.

If you purchase an item and pay more than fair market value for it, the difference could be a tax deduction. For example, if a vacation normally costs $1000 but you purchase it through a charity for $1200, the difference of $200 would be deduction on your Schedule A. If you purchase it for at or below fair market value, there would be not tax deduction even if the charity receives all the money because you received something in value.

Answer 3

Uh, no - since you are getting something of value (the ticket) for your "contribution", the only part that would be deductible would be what you paid that was over the fair market value of the ticket - for example if you bought a ticket that would normally cost $500 but gave the charity $700 for it, then the extra $200 would be deductible. If the non-profit or someone else is telling you differently, they're not only wrong, but are going to get you into trouble if you follow their advice.

Answer 4

It's like using a frequent shopper card at the supermarket. The store gives a small percentage of purchases to the charity of your choice, but you don't get credit for it.

You will not be able to take a penny of deduction.

Answer 5

before you make any decisions, talk to your tax advisor.