Is it possible to make tax write-offs on gifts & donations to personal friends/family?
I have had to spend hundreds on gifts for weddings and otherwise this year. Plus a friend at work passed away recently and I donated to the fund for his young children. I was wondering if either of these cases, or any other similar cases, can be considered write-offs. Thank you for the help.
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No.In fact you may incur a gift tax if the value is over a certain amount per person in a one-year period.
Only if your friends and family are registered as a 501(C )3.
@syz got it. Unless you’re making contributions to a charitable organization (or other tax exempt entity with that type IRS status) you can’t write it off.
If the fund you write of is through an organization, they will usually state if a contribution is tax deductible (or how much of one).
You can give up to $10,000 per person per year and avoid all taxes on that gift, IF you do not call it charity, but rathe r a gift.
If you can give me some details of what you want to give, I can tell you how to avoid the tax (within limits). You can for instance; if you and your SO want to give money to your child and their SO, you can transfer $40,000 per year to them tax free for you and them.
If you do not want to give details for the world to see you can PM me.
@DrBill Well the gift is actually combined between my sister and myself, though she gave the larger portion and I was going to have her write it off for herself. It was only about $1,100 but neither of us will probably be able to donate beyond that for the remainder of the year, so I thought why not. But is it even worth it for such a small amount? Thanks.
Depending on your income (and tax bracket) that would save you about $100
@DrBill: the gifting amount in 2009 is $13,000, not the $10K you mentioned.
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