Jeff Wisnia wrote:

- quote -

snip

- quote -


Yep, Dick's right, they must sleep well, they sure lie easy.

If you purchase something from a charitable organization,
you do not have a charitable contribution deduction because
you received something of value in exchange for the payment.
If you receive a premium or other benefit in exchange for a
contribution, the organization must tell you how much of
your contribution is allocable to the benefits and how much
is a charitable contribution.

When you buy a raffle ticket, you get something of value --
the chance to win the prize. There is no charitable
deduction. See Rev Rul 83-130, 1983-2 CB 148. The Sixth
Circuit has suggested that if the charitable organization
put a reasonable value on the raffle ticket, then any excess
of the amount paid over the value of the ticket could be a
charitable contribution. Goldman v. Commissioner, 388 F2d
476, CA6 (1967).

The ticket purchase might be defensible as an ordinary and
necessary business expense, i.e., to maintain a relationship
with a customer. Another approach would be to make a
contribution to the visiting nurses' association with a
cover letter specifically stating that you are not
purchasing raffle tickets, but making a voluntary
contribution to the organization.

Katie in San Diego

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

"Jeff Wisnia" <jwisnia[at]conversent.net> wrote:

- quote -

Good instincts.

- quote -

No. They are specifically excluded. See Pub 526.

- quote -

Well, at least they don't bill themselves as the visiting
tax advisor association.

- quote -

The former.

- quote -

Nice try. No.

--
Phil Marti
Clarksburg, MD

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Jeff Wisnia wrote:

- quote -

NOT DEDUCTIBLE AS CHARITABLE CONTRIBUTION
Raffle, bingo or lottery tickets See examples (Table 1) of
Charitable Contributions (can or cannot deduct)
http://www.irs.gov/publications/p526/ar01.html

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Jeff Wisnia wrote:

- quote -

Dick has the rights of it. First of all, you suspect
correctly, losing tickets, esp those with heel marks on them
after being thrown on the dog track floor in disgust and
harvested by winners, can not be used as deductions.

The statement on that "Pot of gold" raffle ticket to the
effect that the 100$ is tax deductible is likewise
completely false, and this needs to be brought to the
attention of the sponsors AND the IRS (in my opinion).

However; as for the matter of a 100$ ticket being bought
since it might be expected of your organization, different
matter. If the business keeps the ticket and wins, then
it's a tax deduction, probably as a miscellaneous expense,
since the winnings will be put on page one of the tax return
as "other income". If the business instead gives the bought
ticket to an employee, the deduction is limited to 25$ as a
gift, the balance being nondeductible.

What if the business instead gives the ticket to a church?
Charitable contribution. to any other individual with a
business relationship, e.g. another customer? perhaps an
advertising expense deduction. To one of the corporate
officers? different results depending. and so on.

ChEAr$,
Harlan Lunsford, EA n LA

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Jeff Wisnia <jwisnia[at]conversent.net> wrote:

- quote -

Correct.

- quote -

You wish!

- quote -

I like that word, gaff. I'd call it a lie.

- quote -

Maybe, provided you never accepted the lottery ticket.

- quote -

K2PZH WPI EE '61

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Jeff Wisnia wrote:

- quote -

The nonprofit is flat WRONG. Costs of a lottery or raffle
ticket is NOT deductible as a charity contribution. See IRS
Pub 526, where this situation is explicitly explained.

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Jeff Wisnia <jwisnia[at]conversent.net> wrote:

- quote -

Lottery tickets are never entitled to a charitable
deduction.

- quote -

Their letter is wrong. Investigate the organization to be
sure it isn't a scam. There are people who set up
nonprofits just so they can scam people - they then fold
when they collect as much money as they can.

- quote -

From the IRS's standpoint, you receive value in exchange for
the price of a lottery ticket. So it's not a gift.

Stu

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

I've long believed that gambling expenses are only
deductable against winnings year by year. More than once
I've heard people asking friends and fellow employees if
they'd save and give their losing state lottery tickets to
them to "help out" someone in their family who'd made a
significant lottery win that year. (An illegal practice I'd
suspect.)

Is there an exemption allowing lottery ticket purchases from
non-profit organizations and charities to be deducted as
charitable expenses against ordinary income, even losing
ones?

Today we received a "Pot of Gold" raffle solicitation from a
non- profit visiting nurse association our business provides
professional services to. The letter stated "The $100.00
ticket cost is tax deductible",

Was that statement implying that ALL ticket purchases were
deductible just an gaff by the person composing the letter,
or is in fact the purchase of a losing ticket an allowable
charitible contribution?

Failing that, since we do about $10,000 a year of business
with that organization, would the purchase of a non-winning
$100.00 ticket be considered an allowable "business gift."

My inquiring mind wants to know....

Thanks guys,

Jeff

--
Jeffry Wisnia
(W1BSV + Brass Rat '57 EE)
"Rudeness is the weak man's imitation of strength."

Moderator: They lie like a rug!

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >