[Finance] Rent as a charitable donation

[Jeff Cotten]

MrFranceIsBacon found this on page 6 of the same IRS document
http://www.irs.gov/pub/irs-pdf/p526.pdf

"Contributions you cannot Deduct
[...]
3. The part of a contribution from which you receive or expect to receive a
benefit"

It sounds like that prevents the landlord from donating the amount you'll be
paying to him.

Omegix



On Tue, Mar 8, 2011 at 10:52 AM, Lokkju Brennr <lokkju at gmail.com> wrote:

> Right - but your landlord can legally make a cash donation to the
> charity for the rent amount each month, that you pay back to them as
> rent, as long as money actually changes hands, correct?  i.e., they
> write you a check for tax-deductible contribution of $1000, you write
> them a check for rent of $1000, etc - or is your landlord prevented
> from making tax-deductible contributions?
>
> Loki
>
> On Tue, Mar 8, 2011 at 8:39 AM, Jeff Cotten <omegix at gmail.com> wrote:
> >
> >
> > Synopsis:  Rent is not a tax-deductible benefit when donated to a 501c3
> > charity.
> >
> > Thank you to MrFranceIsBacon from Makers Local 256 who brought this to
> our
> > attention.
> > One of the ideas that Makers Local (Huntsville, AL) had when we started
> was
> > to attain 501c3 charity status,
> > and then convince local building owners to let us set up there rent-free,
> > while they wrote the Fair Market Value (FMV) off
> > as a charitable donation on their taxes.
> >
> > There are tax laws preventing this, it is considered Partial Interest in
> > Property.
> >
> > Ref:  Page 9, Example 1:  http://www.irs.gov/pub/irs-pdf/p526.pdf
> >
> >
> > I've added an entry on the wiki about this here:
> > http://hackerspaces.org/wiki/Finances#Tax_Laws
> >
> >
> > Omegix
> > Makers Local 256
> >
> >
> > _______________________________________________
> > Finance mailing list
> > Finance at lists.hackerspaces.org
> > http://lists.hackerspaces.org/mailman/listinfo/finance
> >
> >
>
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