By Adam Pagnucco.
So you support Candidate X and want to give them money. Great, go for it! But don’t expect a tax break from Uncle Sam or state and local governments in Maryland.
I shouldn’t have to print this but I guess I do. An alert reader spotted a statement by new county executive candidate Celeste Iroha that “Contributions or gifts to Celeste for County Executive are tax deductible.” The screenshot below is from her website.
Iroha thinks you should get a tax deduction for contributing to her campaign.
Political contributions are not tax deductible. This excerpt from 26 U.S. Code § 162 (Trade or business expenses) makes that crystal clear.
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(e) Denial of deduction for certain lobbying and political expenditures
(1) In general No deduction shall be allowed under subsection (a) for any amount paid or incurred in connection with—
(B) participation in, or intervention in, any political campaign on behalf of (or in opposition to) any candidate for public office,
(C) any attempt to influence the general public, or segments thereof, with respect to elections, legislative matters, or referendums, or
(D) any direct communication with a covered executive branch official in an attempt to influence the official actions or positions of such official.
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Bribes and kickbacks are also not deductible just in case anyone was wondering. (You know who you are!)
So go ahead and contribute to Iroha or anyone else you like. Just don’t request a tax break because of it. Even your favorite politician can’t hook you up with that, at least for now.
Update: As of this writing, Iroha’s website does not include an authority line as required by Maryland campaign finance law.