Is it Tax Deductible?: $3 in a can for Hummingbird House
Would that be tax deductible? YES.
It is over $2.
Hummingbird House is a DGR.
We are a profitable small business that is paying its fair share of tax.
Lets give another scenario…
Is it Tax Deductible?: $10,000 transfer to Hummingbird House bank account.
Well, first off… Paul and Gabrielle Quilliam (the founders of Hummingbird House) would be very happy with you.
And second, that would be tax deductible because it’s over $2, they are a DGR and you are profitable (if you’re not a profitable business or as profitable as you’d like to be, come along to our next Cash Rich Business Workshop)
Is it Tax Deductible?: a $250 ticket to the Hummingbird House Gala Dinner, May 21.
And here’s why:
There’s a fourth rule -
If you receive a benefit in return for your giving, you can’t receive a tax deduction.
So in scenario 1 and 2 when you gave $3 and $10,000, it was a one way gift.
However, when you pay for a Gala Dinner ticket, you receive a lot of benefit in return.