Technical topics regarding tax preparation.
18-Sep-2021 8:16pm
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I purchased a membership as a birthday gift for a person to our local Art Museum.
I received a letter from the Museum thanking me for purchasing this gift membership for this person.
It included this Summary of my contribution:
"Date of Gift: 9/15/2021
Gift Designation: Membership
Gift Amount: $100
Tax-deductible amount: $100
Please retain this information for your tax purposes. Your contribution is fully deductible to the extent allowed by law. The estimated non-deductible value of the goods and service provided in return for you donation is reflected in the tax deductible amount."
Admission to this museum requires the purchase of a ticket - with the exception of one Sunday a month when admission is free (and does not include any special exhibits). "Members" also get free parking.
I cannot see any basis for the Museum advising that this $100 is tax deductible. Thoughts appreciated.
18-Sep-2021 8:37pm
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For starters, it's not your membership, so how is it deductible? It's a gift to your friend, not to the museum.
But if you buy a membership in the museum, and it's still required that you buy a ticket for admission, then you get the deduction as they say. Even if you might get other privileges from the membership. Here's a totally non-authoritative but good item to read
https://www.americanmuseummembership.or ... _rules.pdf
18-Sep-2021 9:23pm
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Nilodop wrote:For starters, it's not your membership, so how is it deductible? It's a gift to your friend, not to the museum.
But if you buy a membership in the museum, and it's still required that you buy a ticket for admission, then you get the deduction as they say. Even if you might get other privileges from the membership. Here's a totally non-authoritative but good item to read
https://www.americanmuseummembership.or ... _rules.pdf
Well, when I donate money in memory of or in honor of a deceased friend to a 501(c)(3) charity, and I receive nothing in value other than the recipients and my good feelings, it is my money and my deduction. But the situation I describe does include 100% good/services in return so my deduction, like yours (pun intended) is that the tax law provides no tax deduction to the giver or the recipient.
Thanks for the reference - I will read and send to the Museum. I would never deduct that $100, I am just trying to protect the Art Museum from getting into trouble by providing erroneous charitable deduction confirmations.
20-Sep-2021 8:47am
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Perhaps the benefit received by the member is de minimis? ($8.60 or some such small amount, indexed annually)
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