Page 73 - Virtual Currencies

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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
be deductible as long as they aren't ear- contribution, the organization directly or in- Appraisal Fees
marked to go to the foreign charity. For the directly pays, has paid, or is expected to
contribution to be deductible, the qualified pay any premium on any life insurance, an- You can't deduct as a charitable contribution
organization must approve the program as nuity, or endowment contract for which any fees you pay to find the FMV of donated
furthering its own exempt purposes and you, any member of your family, or any property.
must keep control over the use of the con- other person chosen by you (other than a
tributed funds. The contribution is also de- qualified charitable organization) is a bene- Contributions to
ductible if the foreign charity is only an ad- ficiary.
ministrative arm of the qualified Example. You donate money to a Donor-Advised Funds
organization. qualified organization. The charity uses the
6. Homeowners' associations. money to purchase a cash value life insur- You can't deduct a contribution to a donor-ad-
vised fund if:
ance policy. The beneficiaries under the in-
7. Labor unions. surance policy include members of your • The qualified organization that sponsors
8. Political organizations and candidates. family. Even though the charity may even- the fund is a war veterans' organization, a
tually get some benefit out of the insurance
fraternal society, or a nonprofit cemetery
company; or
Contributions From Which policy, you can't deduct any part of the • You don't have an acknowledgment from
donation.
You Benefit that sponsoring organization that it has ex-
Qualified Charitable Distributions clusive legal control over the assets con-
If you receive or expect to receive a financial or tributed.
economic benefit as a result of making a contri- A qualified charitable distribution (QCD) is a There are also other circumstances in which
bution to a qualified organization, you can't de- distribution made directly by the trustee of your you can't deduct your contribution to a do-
duct the part of the contribution that represents individual retirement arrangement (IRA), other nor-advised fund.
the value of the benefit you receive. See Contri- than an SEP or SIMPLE IRA, to certain qualified
butions From Which You Benefit under Contri- organizations. You must have been at least age Generally, a donor-advised fund is a fund or
butions You Can Deduct, earlier. These contri- 70 1 /2 when the distribution was made. Your total account in which a donor can, because of being
butions include the following. QCDs for the year can't be more than $100,000. a donor, advise the fund how to distribute or in-
vest amounts held in the fund. For details, see
• Contributions to a college or university if If all the requirements are met, a QCD may be
the amount paid is to (or for the benefit of) nontaxable, however if the QCD is nontaxable, Internal Revenue Code section 170(f)(18).
a college or university in exchange for tick- you may not be able to claim it as a charitable
ets (or the right to buy tickets) to an athletic contribution deduction. You may be able to Partial Interest in Property
event in an athletic stadium of the college claim a charitable contribution deduction if you
or university. claim the income you are deducting as a quali- Generally, you can't deduct a contribution of
• Contributions from which you receive or fied contribution. See Pub. 590-B, Distributions less than your entire interest in property. For de-
expect to receive a credit or deduction from Individual Retirement Arrangements tails, see Partial Interest in Property under Con-
against state or local taxes unless an ex- (IRAs), for more information about QCDs. tributions of Property, later.
ception applies. See State or local tax
credit and State or local tax deduction, ear- Value of Time or Services
lier. Contributions of
• Contributions for lobbying. This includes You can't deduct the value of your time or serv- Property
amounts you earmark for use in, or in con- ices, including:
nection with, influencing specific legisla- • Blood donations to the American Red
tion. Cross or to blood banks, and If you contribute property to a qualified organi-
• Contributions to a retirement home for • The value of income lost while you work as zation, the amount of your charitable contribu-
room, board, maintenance, or admittance. an unpaid volunteer for a qualified organi- tion is generally the FMV of the property at the
Also, if the amount of your contribution de- zation. time of the contribution. However, if the prop-
pends on the type or size of apartment you erty has increased in value, you may have to
will occupy, it isn't a charitable contribu- make some adjustments to the amount of your
tion. Personal Expenses deduction. See Giving Property That Has In-
• Costs of raffles, bingo, lottery, etc. You creased in Value, later.
can't deduct as a charitable contribution You can't deduct personal, living, or family ex-
amounts you pay to buy raffle or lottery penses, such as the following items. For information about the records you must
tickets or to play bingo or other games of • The cost of meals you eat while you per- keep and the information you must furnish with
chance. For information on how to report form services for a qualified organization, your return if you donate property, see Substan-
gambling winnings and losses, see Expen- unless it is necessary for you to be away tiation Requirements and How To Report, later.
ses You Can Deduct in Pub. 529. from home overnight while performing the
• Dues to fraternal orders and similar services. Contributions Subject to
groups. However, see Membership fees or • Adoption expenses, including fees paid to Special Rules
dues under Contributions From Which You an adoption agency and the costs of keep-
Benefit, earlier. ing a child in your home before the adop- Special rules apply if you contribute:
• Tuition, or amounts you pay instead of tui- tion is final. However, you may be able to • Clothing or household items;
tion. You can't deduct as a charitable con- claim a tax credit for these expenses. Also, • A car, boat, or airplane;
tribution amounts you pay as tuition even if you may be able to exclude from your • Taxidermy property;
you pay them for children to attend paro- gross income amounts paid or reimbursed • Property subject to a debt;
chial schools or qualifying nonprofit day- by your employer for your adoption expen- • A partial interest in property;
care centers. You also can't deduct any ses. See Form 8839, Qualified Adoption • A fractional interest in tangible personal
fixed amount you must pay in addition to, Expenses, and its instructions, for more in- property;
or instead of, tuition to enroll in a private formation. • A qualified conservation contribution;
school, even if it is designated as a “dona- • A future interest in tangible personal prop-
tion.” erty;
• Contributions connected with split-dollar • Inventory from your business; or
insurance arrangements. You can't deduct • A patent or other intellectual property.
any part of a contribution to a qualified or-
ganization if, in connection with the These special rules are described next.
Publication 526 (2022) Page 7