Johnson Gasink & Baxter, LLP Legal Blog

As I was out shopping for a gift for my wife, trying not to be the husband shopping frantically on Christmas Eve, I dropped some change into a Salvation Army bucket.  With that action, it brought about the reality that there is a little over one month left in the year.  The looming deadline is important if you are trying to figure a way to reduce your taxable income.  In the spirit of the holiday season, it’s always a great idea to help out others through a donation to your favorite charity, and at the same time claim the deduction on your income taxes.  In order for the donation to qualify as a deduction on your taxes, the charity must be a 501(c)(3) organization.  Unfortunately, your adult children that moved back into your basement, although they may feel like a charity, do not qualify for the deduction.  Additionally, the holiday season does not always bring out the best in people, so be wary of those who hold themselves out as a charity and are not.  When in doubt, the safest action is to verify the charity on the Internal Revenue Service’s website. 

Spencer