Kick Off Deductions for Booster Gifts
Do you support the
football team of a local college or your alma mater? You may be eligible for
a tax break for your generosity.
How it works: If you donate funds to a college booster club or similar
program, you may deduct part of the payment as a charitable contribution,
even if the gift provides you with preferred ticket status for games. The
deduction is limited to 80% of the donation.
However, any part of the payment that goes toward actual tickets is
nondeductible. You must subtract the cost of the tickets before the 80% rule
is applied.
Example: John pays $1,000 a year to belong to a booster club. This gives him
the right to buy season tickets to football games. If the gift does not
provide any tickets in return, he can deduct $800 (80% of $1,000). But if
the donation covers tickets at a cost of $500, John’s deduction is limited
to $400 (80% of the difference between $1,000 and $500).
Wherewithal
is provided by Somerset for our clients and other interested persons
upon request. Since technical information is presented in generalized
fashion, no final conclusion on these topics should be made without
further review. For additional information on the issues, please
contact
a member of the firm. Somerset provides total financial solutions,
including accounting, assurance, information solutions, litigation &
valuation, tax, wealth management and management consulting services to
entrepreneurs and their businesses. This document is not intended or
written to be used, and cannot be used, for the purpose of avoiding tax
penalties that may be imposed on the taxpayer.
Somerset CPAs,
P.C.
3925 River Crossing Parkway, Third Floor
Indianapolis, Indiana 46240
317.472.2200 • 800.469.7206 • FAX 317.208.1200
www.somersetcpas.com
info@somersetcpas.com
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