Fw: Contributions to BSA Units - Tax Deductibility
Bruce E. Cobern (bec@PIPELINE.COM)
Wed, 26 Nov 1997 09:23:12 -0500
> From: Kim B. Hannemann <Khannemann@worldbank.org>
> To: email@example.com
> Subject: Re: Contributions to BSA Units - Tax Deductibility
> Date: Tuesday, November 25, 1997 4:53 PM
> (436.3 7-23-1997)) id 8525655A.0078D5EA ; Tue, 25 Nov 1997 16:59:50
> X-Lotus-FromDomain: WORLDBANK
> As usual, a cogent and thoughtful post, no matter what the length.
Thank you. Sometimes I get to combine vocation and avocation, like when I
speak on Taxes and Scouting at various lodge and section conclaves. I
usually use Tom Turba's excellent article as my handout.
> I wish we could get the IRS to rule (or find a ruling) to settle this. I
> wish someone could come forward and say that the IRS even gave them a
> time, or questioned a deduction for Scouts, but no one has.
> When I say
> >It is clear (and I believe would be held so by either a court of law or
> >tax court, if there still is such a thing) that the IRS allows and
> >intends to allow deductions for contributions to Scout units.
> I do so not as a tax expert or lawyer of course. If the IRS intended to
> apply any of the obscure legal language to Scout Units, they would not
> them as an example in the Schedule A and related instructions. The
> would be HUGE.
Well, I'm not sure that the people who write the instructions understand
the CO system either. They also, very likely, think they are talking
about contributions to national or local councils, like SME or FOS or
whatever today's acronym is. The instructions are just probably not well
thought out, in a technical sense. I also believe that an agent would be
hard pressed to try to justify disallowing a deduction because of the
nature of the CO, rather than the nature of the troop where the assets are
used, regardless of what the LAW says. That is why there has been little
hue and cry, although they did once, by letter ruling, disallow the
deduction of the cost of a trip to PTC, but that was years ago and I
usually advise to ignore it.
> I agree with you on the issue of "who owns the equipment, bank account,
> etc." too. For all practical purposes, the unit owns them.
I really would like to see the current section in the operations manuals
about what happens to assets when a troop folds.
Bruce E. Cobern
Terry Howerton Sakima Group, Inc. SCOUTER Magazine Kansas City