Can You Take a Tax Deduction for Wedding Receptions?
Most wedding receptions are happy events - and in some cases, they are tax-deductible events as well. There are strategies people can follow to save expenses on their wedding events by claiming them as federal tax deductions. The IRS sets down the rules and guidelines for these deductions, and anyone planning a reception should read carefully the agency's printed and online literature on the subject.
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Nonprofits
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Receptions held at a nonprofit operation, such as a museum, may provide some tax savings. The fees that you pay to the organization for the use of their facilities and grounds may be tax deductible, as all donations to nonprofit charitable groups are.
Church Facilities
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If you hold the reception in a church, part of the rental fee may be tax deductible if it exceeds the fair market value of such a rental. To take this deduction, the church or nonprofit must provide you with a statement of all fees paid for use of its facilities. Any services the organization provides must be subtracted from this amount.
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Donations
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Donations of your reception flowers and decorations to a charitable organization may also be tax deductible. Donations to members of the clergy and to their church on behalf of the wedding party are also tax deductible. Any donation made to a qualified charity by you or your wedding guests will be considered deductible for the individual donor by the IRS, and many wedding planners are suggesting such donations in place of, or in addition to, traditional wedding gifts or reception favors.
Wedding Gowns
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Some charities accept donations of wedding dresses, bridesmaid dresses and accessories such as shoes and purses, as well. These groups resell the dresses and donate the proceeds to a worthy cause. You may be able to deduct the retail value of the dress. Making Memories, a breast-cancer foundation, accepts contributions of wedding gowns and bridesmaid dresses, and the Cinderella Project in upstate New York accepts wedding apparel for donation to young ladies who have trouble affording a prom dress.
Charitable Gifts
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Instead of a traditional gift registry, you may set up a charity registry. Guests don't have to do any shopping, and you don't have to bother with registries. Your guests are invited to make donations via their credit cards to nonprofits and charitable foundations of their choice, if multiple organizations are chosen, or to the charity of your choice. The donation is fully deductible when made through a qualified organization such as the I Do Foundation.
Tax Procedures
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To claim charitable deductions, you must itemize them on Schedule A of Form 1040. The IRS will need any and all receipts and statements that support the fees, expenses and donations that you claim. If your total noncash contributions exceed $500, you must also fill out Form 8283, Noncash Charitable Contributions, and attach it to your tax return. If you donate a single item worth more than $5,000, you must add Form 8283, Section B, and obtain an appraisal.
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References
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