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Those who say the police department is not a charitable organization are correct. However, a tax deduction is also available for donations to a governmental unit. So a donation to a PD is, potentially, deductible.
I think the gift would have to be no-strings-attached and not directly linked to a conviction. Then, as someone else said, it is the discharge of a PD obligation. Others have mentioned the restrictions on AGI, which may dent your tax deduction. |
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johngrobmyer
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YES it is deductible. You will need a receipt from the Police Department, but they are considered a Non-Profit Org. However, you are only allowed to claim up to 75% of your agi as deductible. |
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mattapan26
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In general, you can claim a charitable deduction for contributions to government agencies. The issue here is whether the transfer to the police department was a contribution or whether they would be viewed as a mere conduit to fund your otherwise non-deductible obligation. Class answer, the hypothetical reward poster screwed up and should have told the police to offer the reward and placed the money in an escrow where the police could take it when the killer is convicted. The contribution would then be to fund the obligation of the police department. |
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NONAME
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no deduction - it was not donated to a tax exempt corporation |
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surfin987
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you need an accountant! Good luck! |
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Michael R
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Why would it be? it's not like a donation - you offered a reward to a person and not to tax exempt organization. |
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J.C.
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is tax exception |
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True101
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Yes you would need a receipt from the nonprofit organization the city or county police would have set up for that type of donation |
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loser
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You may claim it on your taxes as an itemized deduction, The people who claim the money will be responsible for all the wit-holdings that the government will want, approximately 45%. |
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god knows and sees else Yahoo
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TradersAccounting.com - Out with the Old, In with the New - Tax ...That deduction will increase to 75% in 2006 and 80% in 2007. ... Unlike their IRS counterparts, these bounty hunters earn a reward for every deadbeat they ...
www.tradersaccounting.com/TaxTipsForTr... - 16k - Cached - Similar pages |
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pusherhombre
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No. You are not giving a charitable deduction and the police department is not a charitable organization. |
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nova_queen_28
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To my knowledge, the police department itself is a government entity - NOT a 501c3 or qualifyting organization.
Donating to a 501c3 (not-for-profit) or qualifying organization would constitute a tax deductible contribution.
If this came up on someone's tax return that I was doing, I would go with caution and advise them against trying to claim this as a charitible contribution. |
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Marvinator
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No. The money did not go to the pOlice it went to a person who is not registered as a non-profit or tax exempt organization.
Your money is a GIFT. LifeTime Gift Rules apply only to family, so this cannot be considered a tax deduction of any kind. |
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brandie c
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i dont know |
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Lara <:(((><
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Would this be conceded a donation to the police department. because you donated it to the police to help find this killer, if so you could clam it, but don't take my word for it. good luck. |
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Miki
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if u are married u can claim $22,000 and single $11000 as a gift deduction. since the money was given to an individual and not a charity, it doesn't count for anything. |
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Kenneth J
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Go on Instinct. Thanks 4 the points :-) |
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Samantha G
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I would contact:
Frohling & Associates they are located in Canton, Michigan you can reach them @ 735-455-5800 that's where I get my advice from. |
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