The Waterbury Democrat., 1943-02-09
YOUR INCOME
TAX XII
DEDUCTIONS FOR C0NTRIBU-
TTONS part ~

Contributions and gifts which are
allowable deductions for Federal IN
come tax purposes must be OF
character falling within the nmAta-
tons set by law. The law detines
Ave categories Of contributions
which are allowable as deductions
to individuals UP to IS per cent OF
the net income competed before the
deduction Is made:
~ Contributions to or Tor the
use Of the United States or any OF
its political subdivisions or possess
siors, provided the contributions
are to be used solely for public pur-
poses, are deductible. II contribu.
Ton is for the benefit Of the donor,
such O contribution would not DO
deductible.
(2) Contributions made to o cor
poration, trust, community chest,
fund, or foundation created or Or
ga1aized In the United States or any
Of It's possessions or under the law
Of the United States or OF any state
or Territory or Of any possession OF
the United States, no part OF the
earnings Of which inures to the ben
efit Of any individual, and no SUBJ
stantial part. Of the activities Of
which Is attempting to influence leg
islation, and which Is organized ana
operated exclusively for one or more
OF the following purposes: ca char
table, (b) religious, Co educational.
(d) scientific, (e) prevention OF cru
city to animals or children, are de-
ductible. fs6
Such organizations would include
the Red Cross, Community CHESTS.
the U. s. O., the British War ReileI
society, Inc, and other war relief
organizat ions II organized in the
United States. Religious contriDu-
tons would include all contributions
and assessments paid to religious
groups, including pew rents, ana
church assessments" and dues.
contributions for educational pur"
poses would include those made 70
Ilonprofit schools and universities
Boy Scouts, the D. A. r. ana Ike
ORGANIZATIONS, and to other non.
profit educational organizations.
to organizations for scientif1c pur.
poses would include nonprofit re"
search foundations and other nom
profit domestic organizations en-
gagged in research.
I3)Contributions are also deduct
ible If made to domestic fraternaI
society operating under the lodge
system, but only If the contributions
are to be used for one OF the pur-
poses listed above. Dues ana mem.
bership fees in such societies are not
deductible.
"a Contributions made to organi-
zations of United States war veter.
ans and auxiliaries are deductible II
such organizations. units. or soci-
cites are organized in the United
states or any American possession,
and II no part Of the net earnings
Of the organization is for the bene-
at Of any private shareholder or IN
dividual.
In addition to contributions Of the
character indicated above. certain
other contributions are allowable. as
A business expense, 10 q taxpayer
engaged In trade or business, II the
contribution Is In furtheTance Of his
trade or business. such c0ntEibu-
tons would include donations to q
Chamber Of Commerce or 70 trade
associations, u such contributions
are IN general fuFtheFaaee o. onet
trade OF business, and are not foE
the purpose Of Influencing leslsla-
ton.
A contribution may be mads "A
money Og property, but y N prop
erty, then the amount Of the cosatEi.
button Is measured By the fair mar
ret value Of the property at The tint
o. the contribution.
IN preparing = Federal income tei
return the amount ahoWn ~ Item 4
Cor contributions must be guppoFtel
BY q schedule showing TIE names q
lsio organisations % which the eoa'
frbusi0na we're made ana IN
] amgnnfa e1niti9asB6.