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Can an individual that made a loan to a charity get a tax

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deduction for donating the annual...
Can an individual that made a loan to a charity get a tax deduction for donating the annual loan interest instead of receiving the loan interest?
Submitted: 1 year ago.Category: Tax
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Answered in 1 hour by:
12/18/2015
Tax Professional: Robin D., Senior Tax Advisor 4 replied 1 year ago
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15,879
Experience: 15years with H & R Block. Divisional leader, Instructor
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Hello

The amount donated may be deducted as a charitable gift or it can be an interest free loan (depending on the amount of the loan).

Iindividuals can make up to $250,000 in interest-free loans to nonprofits (qualified 501(c)(3)s) each calendar year without imputed interest or phantom interest but also no charitable deduction for value of the “gift” of the interest from the tax-free loan).

If over that amount of loan then the interest is added as income and a deduction is taken on Schedule A.

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Tax Professional: Robin D., Senior Tax Advisor 4 replied 1 year ago

If my answer addressed your question please rate below or above (let me know if you have difficulty as I believe the system changed), if you need more information reply below.

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Tax Professional: Robin D., Senior Tax Advisor 4 replied 1 year ago

Please advise if you need more information or rating in a positive way is acceptable.

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