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Posted by removeps-groups@yahoo.com on June 7, 2008, 3:09 pm
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> On Jun 5, 5:00�pm, "removeps-gro...@yahoo.com" <removeps-
> > It seems unlikely that a high school's student itemized deduction
> > would be larger than their standard deduction (minimum $850), but with
> > summer jobs, investment income from stocks given to them by rich
> > parents, state taxes on these items, one needs to check to be sure.
>
> I don't think the OP was talking about current students (reunion
> event), so the assumption is that the attendees are all graduates or
> alumni.
I need to read more carefully.
> > I don't think you have to mess with a partnership return 1065. �Not
> > sure if it even applies here anyway. �And if each person is donating a
> > large sum, say more than $250, then they should donate seperately to
> > avoid the IRS telling them that they had to file a form 1065.
>
> You are overthinking the "problem". What partnership?
Normally to split income or deductions among several people, a
partnership return is required. So I imagine, technically speaking, a
1065 is required to split the charitable deduction. But it's so much
work for so little money that I think each person can just report
their contribution on their own tax return and have the proper
documentation available in case the IRS asks. Of course, the best
solution is to write individual checks and get individual receipts.
But events like these may not be so well organized that there is a
dedicated person there to give individual receipts, or perhaps
everyone puts up $20 cash, and since they're there to socialize they
don't want to waste time filling out forms and getting a receipt. I
feel they ought to get the deduction they're entitled to. Maybe one
person can do the paperwork and email them a receipt and statement of
their individual $20 contributions. It seems fair.
In any case, it's possible that if your income is 60049 then a $20
itemized deduction would not change your tax at all, as the tax is the
same for incomes from 60000 to 60050 (I forget the actual range
numbers).
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