Post # 1
hello hello! so i’ve been narrowing down my venues and my top pick has been a cause for controversy between FH and I. I absolutely love it, but at $3500 he thinks it’s too expensive. I see his point, especially because of the need for sole catering (FMIL is a caterer and we wouldn’t be able to use her), but most other venues in the area are in the $2500 – $4000 range.
Then, I remembered that because this top venue of mine is an OK State Museum, it’s tax deductible! I’m not quite sure how to go about calculating the savings though, can anyone help? I used FSAFeds’ calculator (that’s what I did my lasik through), but I don’t know if there are different tax deduction rules or if a deduction’s a deduction. I plugged in my income vs my parents (they’d like to foot the bill for the venue) and I think it was like $1165 savings for me vs $1000 for my parents.
Does this sound about right or do any bees know a more accurate way to calculate savings? Because that would bring down the venue cost to the “lower end” and make both me and my dear FH happy! 😀
Post # 3
This would not be through FSAFEDS, the way you determine a charitable deduction is on the irs website (irs.gov). A FSA (flexible spending account) is when you take money out of your taxable income that you use on qualified medical expenses.
It only counts if your itemized deductions equal more than your standard deduction, which is $11,400 for a married couple. Also, you cannot deduct the amount that you receive as a benefit, which would be the amount to rent a comparable venue.
Basically I think you need to trash the idea of deducting this because I doubt you will have any benefit from it. Some other things that go into itemized deductions are state income taxes, property taxes, and interest on a mortgage. I did taxes for 2 years.
Here is some info on charitable deductions from IRS.gov.
Post # 4
@MrsSaltWaterTaffy: thanks for the info! in the brochure they gave me, it says that it’s “fully tax deductible as they are considered a donation to the Association and Museum”. because it’s actually a museum membership that you’re “buying” that incidentally happens to come with the option for a one-time facility rental. does that caveat change anything in your eyes? If it’s listed as a straight “membership” style donation as opposed to facility rental, would there still be the same benefit issues? i find it weird that they’d spell out “fully tax deductible” (and they bolded it on top of that) when it’s actually not. I’d think that if there are still benefit issue then they must have it fleshed out as some sort of exception, right? it’s not like they’re some fly-by-night, it’s an old, established state history museum.