DWayneD (Texas)
Posts: 11
Posts: 11
Posted:
Can an individual make a donation to a non-profit corp and then deduct that donation on individual Federal and State Tax Returns?
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Donations to non-profit corp.
Started by DWayneD • 5 replies • 2650 views
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RogerB (Colorado)
Posts: 5,067
Posts: 5,067
Posted:
DWayne, certain non-profits qualify for tax ductions, but not all. For example, a non-profit HOA does not qualify.
BrianB (California)
Posts: 2,820
Posts: 2,820
Posted:
I do believe that only non-profits that have attained certain status as non profits can be included as tax exemptions, namely those that make 501(c) status, for one.
not all non-profits are 501(c)... and thus, donations are not tax exempt.
secondly, most "donations" to a HOA wouldn't be tax exempt as a charity because you receive a good or service for the money, and usually, you receive pretty close to full amount (for example, out of the $20 per home/month our HOA takes in, we spend about $16. the rest goes to our reserve fund. the most you could claim is the $4 each month if we were a 501(c) org).
not all non-profits are 501(c)... and thus, donations are not tax exempt.
secondly, most "donations" to a HOA wouldn't be tax exempt as a charity because you receive a good or service for the money, and usually, you receive pretty close to full amount (for example, out of the $20 per home/month our HOA takes in, we spend about $16. the rest goes to our reserve fund. the most you could claim is the $4 each month if we were a 501(c) org).
JulieS (Georgia)
Posts: 412
Posts: 412
Posted:
I would not think assessments are tax deductible but if you made a donation to the community, say playground equipment, a bench, or something like that, would that be tax deductible? Something to ask your accountant I would think.
RogerB (Colorado)
Posts: 5,067
Posts: 5,067
Posted:
Julie, a donation to the community is not tax deductable. However, if you gave the item, such as play ground equipment, to a qualifying charity that would qualify as a tax deduction. They could independently chose to place it in your HOA common area with approval of your Board.
LeeS1 (New Mexico)
Posts: 26
Posts: 26
Posted:
We had some people insist that they could deduct their mileage while on HOA business, since the HOA is a non profit. I told them they were wrong. The IRS is really clear that such mileage deductions, money or other donated property are not deductible when made to a HOA.
See: http://www.irs.gov/publications/p526/ar01.html
See: http://www.irs.gov/publications/p526/ar01.html
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