|
This article is not
intended to give tax advice. Please consult your tax advisor for
specific rules applicable to your individual situation.
You cannot deduct any money that is paid either directly or indirectly
to a political party or candidate. Therefore, you cannot deduct as a
business expense or as an itemized deduction any money paid for:
• Advertising in a political party's convention program or in any
other publication if part of the publication's proceeds benefits a
political party or candidate;
• A ticket to a dinner or program that is intended to benefit a
political party or candidate; or
• A ticket to any inaugural event--including balls, galas, concerts,
parades, etc.--since such events are generally associated with the
installation of elected political candidates.
If, for example, you buy a ticket to a fund-raising dinner for a
political candidate, you cannot deduct any part of the price of the
ticket, even if the candidate donates the proceeds to charity.
Similarly, you cannot deduct the price of a ticket to an event if it is
held for an candidate who was unsuccessful in his bid for political
office. For example, the price of a ticket to an event to retire a
candidate's campaign debt is not deductible.
You should be aware that these rules apply not only to funds that you
pay to the two national political parties but also to:
• Any national, state, or local committee of a political party;
• Any committee, association, or organization whose purpose is to
influence the election of any individual to public office.
Hence, under these rules, you cannot deduct any contributions that you
make to a political action committee (PAC) if the PAC spends money to
influence the selection, nomination, or election of any individual to
elective public office.
|
