You make the callBy: National Association of Tax Professionals
November 27, 2019

Question: Helen Nelson decided to run for a political office in her local community. For her campaign, she incurred the following expenses totaling $1,570 that she personally paid: $930 printing, yard signs $260, and $380 postage and mailings. Are these allowable deductions on her tax return?

Answer: No. The campaign expenses are not allowable deductions on Helen’s tax return. Taxpayers are normally allowed a deduction for ordinary and necessary business expenses. However, such political expenditures are generally not deductible as trade or business expenses. Under §162(e)(1)(B), no deduction is allowed for political expenditures and lobbying expenses, including amounts paid or incurred in connection with any political campaign on behalf of (or in opposition to) any candidate for public office. Under Reg. §1.276-1(f)(2), a political candidate is a person who, at the time of the event or publication with respect to which the deduction is being sought, has been selected or nominated by a political party for any elective office. It also includes an individual who is generally believed, under the facts and circumstances at the time of the event or publication, by the persons making expenditures in connection therewith to be an individual who is or who in the reasonably foreseeable future will be seeking selection, nomination, or election to any public office.

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penAbout National Association of Tax Professionals

The National Association of Tax Professionals (NATP) is the largest association dedicated to equipping tax professionals with the resources, connections and education they need to provide the highest level of service to their clients. NATP is comprised of over 23,000 leading tax professionals who believe in a superior standard of ethics and exemplify professional excellence. Members rely on NATP to deliver professional connections, content expertise and advocacy that provides them with the support they need to best serve their clients. The organization welcomes all tax professionals in their quest to continually meet the needs of the public, no matter where they are in their careers.

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Information included in this article is accurate as of the publish date. This post is not reflective of tax law changes or IRS guidance that may have occurred after the date of publishing.

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