Campaign Contributions

Research Paper Topic I

Campaign Contributions

Federal Tax Accounting I

Charitable Contributions

In our assignment for class Dr. Cliff Payne wants to deduct campaign contributions of $1,000 dollars to both Barbara Boxer and Carly Fiorina. My research topic is when campaign contributions are deductible. I will research this topic through the IRS website and I will check another source to see if my research is consistent.

According to the IRS website, “you cannot deduct contributions made to a political candidate, a campaign committee, or a newsletter fund. Advertisements in convention bulletins and admissions to dinners or program that benefit a political party or political candidate are not deductible” (Publication 529 (2010), Miscellaneous Deductions:, 2012).

By doing more research, I have found that although the laws are very stringent regarding campaign contributions a tax payer can make contributions that benefit them politically and still get them deducted by doing a little research into the company’s filing status. “501(c)(4) organizations can engage in unlimited lobbying so long as it pertains to the organization's mission. 501(c)(3) organizations are not permitted to engage in political activity, endorse or oppose political candidates, or donate money or time to political campaigns, but 501(c)(4) organizations can do all of the above (The difference between 501(c)(3) and 501(c)(4) organizations | NJ.com:, 2012).”

So, in conclusion, in the case of Dr. Cliff Payne I believe that he can deduct his contributions of $2000 dollars to political campaings. In the future, if he desires to make a tax deductible contribution he should research an organization that has a 501(c)(4)