Shannon in TN Posted April 24, 2011 Share Posted April 24, 2011 I'm not sure how to go about doing this (or if it's even right) but my mom wants to give her iPad to dd to use for school and get a tax deduction for it. Is there a "right" way to go about doing this? Quote Link to comment Share on other sites More sharing options...
Jane in NC Posted April 24, 2011 Share Posted April 24, 2011 Presuming your daughter is homeschooled, there is no tax deduction to be had--at least at the federal level. Perhaps some states have an educational deduction? Quote Link to comment Share on other sites More sharing options...
gingersmom Posted April 24, 2011 Share Posted April 24, 2011 Your mother wants to give her granddaughter a gift and then take a take deduction for the cost of the gift? I would hate to try and prove a donation to an 8 year old child. Quote Link to comment Share on other sites More sharing options...
snickelfritz Posted April 24, 2011 Share Posted April 24, 2011 I think you have to be donating to a non-profit organization (by IRS definitions) for it to be tax deductible. Quote Link to comment Share on other sites More sharing options...
Whereneverever Posted April 24, 2011 Share Posted April 24, 2011 I think you have to be donating to a non-profit organization (by IRS definitions) for it to be tax deductible. :iagree: Quote Link to comment Share on other sites More sharing options...
Cheryl in NM Posted April 24, 2011 Share Posted April 24, 2011 The IRS has a list of approved organizations and types of organizations to which donations are deductible on your taxes. Being a good citizen/grandma isn't enough for the IRS!:tongue_smilie: Quote Link to comment Share on other sites More sharing options...
Tammyla Posted April 24, 2011 Share Posted April 24, 2011 This sounds right. It would be wonderful if we could tax deduct our homeschooling expenses. The IRS has a list of approved organizations and types of organizations to which donations are deductible on your taxes. Being a good citizen/grandma isn't enough for the IRS!:tongue_smilie: Quote Link to comment Share on other sites More sharing options...
KarenNC Posted April 24, 2011 Share Posted April 24, 2011 I think you have to be donating to a non-profit organization (by IRS definitions) for it to be tax deductible. Further than that, it has to be a specific kind of non-profit for anything to be tax deductible (on a federal level, things may vary by state). Not all donations to all non-profits are acceptable. http://www.irs.gov/taxtopics/tc506.html To be deductible, charitable contributions must be made to qualified organizations. Payments to individuals are never deductible. See Publication 526, Charitable Contributions. Then Publication 526 is at http://www.irs.gov/pub/irs-pdf/p526.pdf. The state in which your mother lives should also have their tax code documents online for reference. Quote Link to comment Share on other sites More sharing options...
amey311 Posted April 24, 2011 Share Posted April 24, 2011 I wonder if she's thinking of the gift tax? http://www.irs.gov/businesses/small/article/0,,id=108139,00.html I should add that it looks to me (and I'm not a tax professional, nor do I play one on the internet) that the "educational" exemption only applies if you pay it directly to a school or university. But mostly this just seems confusing to me. Quote Link to comment Share on other sites More sharing options...
Shannon in TN Posted April 24, 2011 Author Share Posted April 24, 2011 I wonder if she's thinking of the gift tax? http://www.irs.gov/businesses/small/article/0,,id=108139,00.html I should add that it looks to me (and I'm not a tax professional, nor do I play one on the internet) that the "educational" exemption only applies if you pay it directly to a school or university. But mostly this just seems confusing to me. I think she is thinking of the "gift tax" thing because she mentioned something along those lines. Just a little background - she bought this for herself some time ago and doesn't really use it like she thought she would. She's looking for a Kindle for herself now. I've always joked with her she could send the iPad on to me if she ever found she didn't want it. I was a bit surprised she was asking for a receipt of some kind so she could consider it a donation but then I quit trying to figure her out a long time ago. We did offer to buy her the Kindle in exchange for the iPad, but she wasn't there to take the message so I have no idea how she'd feel about that. Thanks for all the input. I knew in my gut it just didn't feel "right" but it's nice to know I can back it up somehow. Quote Link to comment Share on other sites More sharing options...
MischiefManaged Posted April 24, 2011 Share Posted April 24, 2011 start a 4-H club -- ours gets lots of items donated that the kids can use. We currently have items checked out from our local Extension Office [netbook/ camera]. Quote Link to comment Share on other sites More sharing options...
Shannon in TN Posted April 24, 2011 Author Share Posted April 24, 2011 start a 4-H club -- ours gets lots of items donated that the kids can use. We currently have items checked out from our local Extension Office [netbook/ camera]. :confused: Now how would I go about doing that? Seems like a bit of work.... Quote Link to comment Share on other sites More sharing options...
elizabeth Posted April 24, 2011 Share Posted April 24, 2011 I think you have to be donating to a non-profit organization (by IRS definitions) for it to be tax deductible. Correct. Quote Link to comment Share on other sites More sharing options...
DawnM Posted April 25, 2011 Share Posted April 25, 2011 Tons of work! :confused: Now how would I go about doing that? Seems like a bit of work.... Quote Link to comment Share on other sites More sharing options...
Shannon in TN Posted April 25, 2011 Author Share Posted April 25, 2011 Tons of work! Then I'm not interested. I have enough work going on in my life - I'm not ready to start a 4-H club. Thanks, though!! Quote Link to comment Share on other sites More sharing options...
snickelfritz Posted April 25, 2011 Share Posted April 25, 2011 Just give her a little cash and call it good. I mean, on a donation that size, the write-off wouldn't be significant enough to make a big fuss over. I do understand that she was likely not making a fuss, just assuming and asking for the receipt. Quote Link to comment Share on other sites More sharing options...
Shannon in TN Posted April 25, 2011 Author Share Posted April 25, 2011 Just give her a little cash and call it good. I mean, on a donation that size, the write-off wouldn't be significant enough to make a big fuss over. I do understand that she was likely not making a fuss, just assuming and asking for the receipt. You're right, she wasn't making a fuss but I'm not sure I'd be able to explain to her these deduction details and have her understand. I think I'm going to suggest she talk to her CPA to see what he would say. Having it come from a "professional" and not me might be a little more convincing. Quote Link to comment Share on other sites More sharing options...
KarenNC Posted April 25, 2011 Share Posted April 25, 2011 start a 4-H club -- ours gets lots of items donated that the kids can use. We currently have items checked out from our local Extension Office [netbook/ camera]. But it would then belong to the 4H club, not to any of the individual children. It would need to be available to all the members on an equal basis, not just to your child. If you left the 4H club for any reason, it would not go with you. Quote Link to comment Share on other sites More sharing options...
KarenNC Posted April 25, 2011 Share Posted April 25, 2011 You're right, she wasn't making a fuss but I'm not sure I'd be able to explain to her these deduction details and have her understand. I think I'm going to suggest she talk to her CPA to see what he would say. Having it come from a "professional" and not me might be a little more convincing. That's the best plan. Quote Link to comment Share on other sites More sharing options...
MischiefManaged Posted April 25, 2011 Share Posted April 25, 2011 But it would then belong to the 4H club, not to any of the individual children. It would need to be available to all the members on an equal basis, not just to your child. If you left the 4H club for any reason, it would not go with you. ayup. but we've found it to still be a great venue. We get to decide how things are checked out, and our club isn't that big. Another way to handle it is to have it donated to the club to be dispersed as a scholarship award for X type of project. No sharing: the kid applies for the scholarship and gets it from the club, not from grandma. Also relieves the club from keeping track of stuff. we didn't find it *that* difficult to start the club, especially considering the benefits and doors it has opened. but everyone has their own criteria of "difficult" ..... ;) i do think having her talk to her CPA is likely the best advice. Quote Link to comment Share on other sites More sharing options...
Ann.without.an.e Posted April 25, 2011 Share Posted April 25, 2011 Can you afford to buy her a kindle and then switch? Just thinking.... Quote Link to comment Share on other sites More sharing options...
Shannon in TN Posted April 25, 2011 Author Share Posted April 25, 2011 Can you afford to buy her a kindle and then switch? Just thinking.... Yes, we can afford it. I'm hoping that once she talks to her CPA and finds that there's no real way to deduct it, she'll accept our offer to purchase the Kindle in exchange for the iPad. Quote Link to comment Share on other sites More sharing options...
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