Who gets the tax deduction?


N

NadCixelsyd

My Christmas gift from Tim was a card: "This Christmas, a $300
donation has been made in your name to the Children's Alliance".
Assuming the charity is recognized, who gets the tax deduction, Tim or
me?
 
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R

Rich Carreiro

NadCixelsyd said:
My Christmas gift from Tim was a card: "This Christmas, a $300
donation has been made in your name to the Children's Alliance".
Assuming the charity is recognized, who gets the tax deduction, Tim or
me?
Tim sent the money so Tim gets the deduction.
 
B

Barry Margolin

NadCixelsyd said:
My Christmas gift from Tim was a card: "This Christmas, a $300
donation has been made in your name to the Children's Alliance".
Assuming the charity is recognized, who gets the tax deduction, Tim or
me?
Seems pretty obvious to me. Whose bank account did the $300 come from?
Do you remember making a donation?
 
D

D. Stussy

NadCixelsyd said:
My Christmas gift from Tim was a card: "This Christmas, a $300
donation has been made in your name to the Children's Alliance".
Assuming the charity is recognized, who gets the tax deduction, Tim or
me?
Nobody, because to date, there's no acknowledgement letter from the charity
to any possible donor and as the amount is over $250, one is required.
 
S

Stuart Bronstein

Rich said:
Tim sent the money so Tim gets the deduction.
Tim sent the money, yes. But it seems to me as if it's the same as
Tim giving OP the money and OP making the donation. If it's in OP's
name, that's the way the charity should view it, and give the
recognition letter as appropriate in that case.
___
Stu
http://DownToEarthLawyer.com
 
I

ira smilovitz

Tim sent the money, yes. But it seems to me as if it's the same as
Tim giving OP the money and OP making the donation. If it's in OP's
name, that's the way the charity should view it, and give the
recognition letter as appropriate in that case.
___
Stu
http://DownToEarthLawyer.com
No, OP does not get the deduction. It's not the same as Tim giving OP the money and OP making the donation because OP never had the money and never made the decision to donate the money.

Ira Smilovitz
Leonia, NJ
 
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B

Bill Brown

Tim sent the money, yes.  But it seems to me as if it's the same as
Tim giving OP the money and OP making the donation.  If it's in OP's
name, that's the way the charity should view it, and give the
recognition letter as appropriate in that case.
___
Don't fall into that an analogy proves something trap. It is true that
payment by one person of some obligations of another is treated as
payment by that other person. However, there is nothing in the tax law
to suggest that anyone besides Tim gets the charitable contribution
deduction. I have little doubt that the charity will send the receipt
to Tim. The charity might send an acknowledgement to the honoree
without specifying the dollar amount.
 
S

Seth

Tim sent the money, yes. But it seems to me as if it's the same as
Tim giving OP the money and OP making the donation.
No, it isn't. OP never had the choice or the money.

Suppose "Tim" is Bill Gates, and the donation made in OP's name is $1
million. Would gift tax be owed? Why? Bill just wrote a check to a
charity, which creates a deduction, not a tax liability.

Seth
 
B

Barry Margolin

[email protected] (Seth) said:
No, it isn't. OP never had the choice or the money.

Suppose "Tim" is Bill Gates, and the donation made in OP's name is $1
million. Would gift tax be owed? Why? Bill just wrote a check to a
charity, which creates a deduction, not a tax liability.
Even if the OP did get the deduction, he probably wouldn't be able to
deduct the whole $1 million. The most you can ever deduct is 50% of
your AGI.
 
B

Bill Brown

Even if the OP did get the deduction, he probably wouldn't be able to
deduct the whole $1 million.  The most you can ever deduct is 50% of
your AGI.
Seth was talking about Bill Gates, not the OP. If Gates doesn't have
AGI in excess of $2,000,000 every year, then I am really disappointed
in him. :),
 
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S

Seth

Seth was talking about Bill Gates, not the OP. If Gates doesn't have
AGI in excess of $2,000,000 every year, then I am really disappointed
in him. :),
The point was, rather, that if the honoree got the deduction, it might
not be immediately usable due to insufficient AGI.

Seth
 
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