Jun
28
How can I claim $3000 on my taxes that I provided to my brother for a car and house repair?
By
I contributed around $3000 the past year by helping my brother get a job, repairs to his trailer, bought him a car, paid past fees to get his water and power connect, and paid in advance, other forms of charity / gifts. Can I deduct any of this on my 2007 taxes if so under what category? Orcan this be claimed on my taxes? Much obliged for the help.
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5 Comments
June 29th, 2010 at 3:19 pm
If you claim this he will have to claim it as income and will likely be taxed like 33%.
June 30th, 2010 at 3:28 pm
You cannot deduct this stuff on your taxes. No way, no how, cannot happen. Just because you gave someone some money does not mean its tax deductible. Sorry about that. One the positive side, since it is under $11,000, he at least does not have to pay income taxes on your gift. Thats about the best thing I can tell you.
July 1st, 2010 at 1:15 am
generally charitable contributions will not be allow a tax break unless give to a charitable orgaization… simply giving money to a relative isn’t going to lower your taxes nor displace any of your inome…
July 3rd, 2010 at 11:03 pm
The only way that you might potentially be able to claim it is if it was a loan, he refuses to pay it back, and you have exhausted all reasonable ways to get it back. This requires that you have charged him reasonable interest and, ideally, he has signed a loan agreement. Then, you might be able to deduct it as a bad debt.
If it’s not a loan, or the loan does not meet IRS requirements for a bad debt, then you cannot deduct it. Your brother is not an IRS-approved non-profit organization, so your money does not qualify as a charitable deduction. It was simply a gift to your brother.
July 6th, 2010 at 2:42 am
You cannot claim any of the “gift” as a deduction on your taxes. Only gifts to recognized charitable organizations are deductable. See Publication 526, Charitable Contributions.