Question

Mark graduated from Central College. This year he decided to attend Central's annual charity costume ball. The organizers request that attendees make a charitable donation to the school of $500 - which Mark paid. The school served all attendees a dinner worth $50. How much could Mark deduct from his taxes this year for this transaction?

Answer 1

When you made charitable donation and also you get sime benefit like dinner,etc then you have to deduct such benefit from the amount of donation you made.

In our case 500 - 50 = 450 is the amount if deduction you can take.

You can deduct charitable contributions of money or property made to qualified organisations if you itemize your deductions. Generally, you can deduct up to 50 % of your adjusted gross income, but 20 % and 30 % limitations apply in some cases.