Discussion:Tickets for drawing; charitable contribution?
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Discussion Forum Index --> Tax Questions --> Tickets for drawing; charitable contribution?
| 7 May 2007 | |
| I believe that the cost of tickets purchased for a drawing to win a prize, etc. is not deductible as a charitable contribution. However, when the ticket shows that a portion of the proceeds goes directly to a qualifying organization, is there any question that that portion is deductible? Thank you. | |
| 7 May 2007 | |
| no, they got their chance at the raffle - worth exactly what the ticket cost | |
Michaelstar (talk|edits) said: | 7 May 2007 |
| On page 2 of Pub 526 - Charitable Contributions - there is a quick check table (1) on what is deductible and not. Cost of raffle, bingo and lottery tickets are not deductible. | |
| 8 May 2007 | |
| I read the pub, so am I just missing the point? Apparently it does not matter that a portion of the ticket price goes directly to a qualifying charitable organization, which sure seems misleading when the charge for the ticket is $20 and it shows that $10 goes to a qualifying organization. Most people would just assume that that portion would be considered a CC. Thanks. | |
| May 8, 2007 | |
| And most people would just take the deduction and never show us the tix! The charitable org needs to fix some of their language or else they can be in some danger. This happens all the time, and one day IRS will crack down. I'm prez of a local rescue mission here that has a huge auction now. For two years I've commanded the verbage in there that items bought do not constitute a charitable contribution unless bot for over fmv. To no avail so far....! | |
Death&Taxes (talk|edits) said: | 8 May 2007 |
| YOu have to read it backwards: 50% of the money is going to the fund raiser but the entire 'bet' is a raffle. If it were written this way, no one could conceive that they were making a deductible contribution and most would probably be shocked to find out the charity did not receive the entire proceeds. | |
| 12 May 2007 | |
| I won two local raffles last year ($12k & $5k)with both organizations requesting my SS#. One is a 501(c)3 org. and the second is an Amer. Legion which I do not think is a 501(c) org. - rec'd nothing from the $5k place at year end and in March called the second place asking if they were going to send me a 1099..oh yes, we forgot. Based on this little example, I think many organizations would fair far better financially if they were more organized with their books - this is on the assumption their payouts are deductible - are they? I thought I'd receive the 1099 used for gambling (can't remember the number of it) but the one I rec'd was a 1099-Misc. The Amer. Legion's raffle for this year's $5k is tonight and I'm hoping I win again! | |
| 14 May 2007 | |
| I have a friend (he does his own taxes) that was audited and the IRS, as expected, rejected his full cost deductions for things he bought from "charities" (like trash bags, Girl Scout cookies, wrapping paper) and well as the cost of various raffle tickets.
Now is you have winnings and you itemize you can deduct all those raffle tickets to the extent they do not exceed winnings. | |
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