Today TaxMama® hears from Eliezer in the TaxQuips Forum with this interesting question. “Many non-profit organizations run raffles with great prizes. Sometimes the raffle tickets can get pricey (>$100) and the entrants want to deduct these amounts as charitable contributions to the non-profit organization. Assuming the entrant did not have any winnings, is there any situation in which these are a valid deduction? Does it matter if there is “no purchase required”? Or that the raffle has a limited (or unlimited) number of tickets sold? Or if it is called a sweepstakes rather than a raffle? Would love to help taxpayers find a legit way.”
When you pay $100 for a raffle ticket, how is that different from paying $100 for lottery tickets?
You have an opportunity to win a prize.
You can deduct the lottery costs up to the amount of your winnings.
Otherwise, no deduction.
So….the only way I can see the cost of those tickets as a deduction, is to have the buyer donate the tickets back to charity – at the time of purchase (not after having lost).
Let’s use this as today’s TaxQuip and see if anyone else has any ideas.
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