Are My Campaign Contributions Tax Deductible?
If you consider yourself a politically motivated individual, it may very well have crossed your mind to contribute to a particular political candidate or party. You may have been motivated to do so following a candidate’s stand on a certain issue, or because you are worried about the general direction the country is moving in and wish to register your strong disapproval. You may also have reasons of a different kind for donating to a particular party or cause, such as doing so in order to obtain a tax break. If so, you may well be wondering if you can declare a political contribution as a deduction.
Unfortunately, according to San Diego CPAs, the answer is no. In order for a donation to be tax deductible, the organization that you designate your contribution for must have a 501c3 status, courtesy of the IRS. In other words, it must be a fully nonprofit organization. Political organizations simply don’t count as nonprofits for obvious reasons. Furthermore, you should know that one of the cardinal rules for a nonprofit organization to attain to that status is that they are absolutely prohibited from participation in political activities, including giving aid or assistance of any kind to a particular candidate.
Does this mean that it’s a bad idea to donate to the political party or candidate of your choice? Of course not. You can make a contribution of anywhere from $1 to the maximum amount of $2,500 allowable to a private individual. The main goal of contributing to a political cause is to support the candidate you feel best represents your wants, needs, and beliefs. If you truly believe in a particular individual or cause, it’s never a bad idea to put your money where your mouth is.
If you have additional questions about what is and isn’t tax deductible, feel free to reach out to R.A. Michael and Associates. We can help you file all your taxes on time and correctly so you avoid costly and embarrassing tax issues like IRS tax liens and collections. Give us a call today at (844) 780-1100. We’re here to help!