1. The gift must be made to a deductible gift recipient (DGRs).
2. The gift must truly be a gift.
3. The gift must be money or property.
4. The gift must comply with any relevant ATO gift conditions.
The amount you can claim depends on the type of gift. For gifts of money, it is the amount of the gift but it must be $2 or more. For gifts of property, there are different rules, depending on the type of property and its value. A tax deduction for most gifts is claimed in the tax return for the income year in which the gift is made. However, you can elect to spread the deduction over five years in certain circumstances.
You cannot claim a donation deduction for items that provide you with a personal benefit, including raffle tickets, chocolates and pens, attending fundraising dinners etc.
If you have questions please contact Andrew Marshall or Janine Orpwood at Langley McKimmie Chartered Accountants on (03) 5427 8100 for an initial consultation.
We provide accounting and wealth management services to clients in Woodend, Gisborne and Macedon Ranges areas within Victoria Australia.