October 16, 2010
Gift Tax on Political Gifts - Not So Fast
Although 2501 may not exclude these gifts directly, Paul Caron blogged that case law in effect prior to adoption of that Code section focused on donative intent, and a person making a gift to a 501(c)(4) organization does not have the donative intent that the Code seeks to tax under the gift tax. There seems to be little direct information about the issue, but perhaps the gifts are not the sort Congress intended to tax as gifts.
Here's a link to Paul Caron's blog.
Thanks to Wendy Gerzog and Harvey Dale who also raised questions about applying the gift tax to these gifts.
If anyone has other information, let me know!
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