Political Donations Tax Deductible
It is the height of election season, and campaign spending is setting new records. As in previous cycles, most of the giving has come from individuals.
For those people, tax questions abound. For example, which donations to political causes and campaigns are tax-deductible? Which ones will be disclosed on the Internet—or reported to the Internal Revenue Service—and which will remain secret? Which could trigger a 35% gift tax?
A crazy quilt of federal tax and election laws makes simple answers elusive. "At best the rules are opaque, and at worst they're misleading," says Ellen a professor at Loyola Law School in who studies the area.
The best approach, say experts, is to know the rudiments of this tricky area in order to identify the most effective donation strategies and avoid a few traps. Tax lament that too many of their clients don't understand what is allowed and what isn't.