No. The contribution is not tax deductible as a charitable contribution since it was made to a §527 organization. It’s also not treated as a taxable gift, meaning it’s not subject to gift tax [§2501(a)(4)]. Therefore, Robert has reduced the size of his taxable estate by $50,000 without using up any of his lifetime applicable exclusion amount.
Taxpayer donated $50,000 to his favorite political party (e.g., Republican or Democratic) organization. Is the contribution tax deductible?
Modified on: Sun, 5 Feb, 2017 at 8:32 PM
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