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  • 1.  FMV for low attendance event/high cost event

    Posted 08-21-2024 01:50 PM

    Hi Everyone,

    We host an annual event where the cost per head can be difficult to assess in advance because the number of attendees can fluctuate widely. The three year average of the cost per head is around $75 per person and our registration fee is $75/guest.  We would like to offer some tax deductibility to our attendees.  Is there a scenario where the organization can 'absorb' a portion of the cost so as to reduce the cost per head and increase the tax deductible portion? 

    I feel like this should be a simple answer, but every year it gives me pause so I'm finally taking the leap to ask.

    Thanks!



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    Molly Kaszuba
    New York Law School
    mollykaszuba@gmail.com
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  • 2.  RE: FMV for low attendance event/high cost event

    Posted 08-21-2024 02:00 PM
    Nope. Even if the entire event is underwritten, the FMV is still $75. As described in IRS Publication 561, FMV is what a willing buyer would pay a willing seller. The actual cost is not relevant other than to help calculate the FMV.

    Furthermore, there is very little need to offer a deductible portion to attack more people. With only one out of eleven taxpayers itemizing (thanks to the much higher standard deduction since 2018), being able to claim a deduction no longer serves as much of an enticement.

    If you are dead-set on making a portion deductible, raise the ticket price to $100!

    John


    John H. Taylor, Principal
    John H. Taylor Consulting, LLC
    2604 Sevier Street
    Durham, NC     27705

    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987






  • 3.  RE: FMV for low attendance event/high cost event

    Posted 08-21-2024 02:06 PM
    Attract more people. I don't think you want to attack anyone ��

    John H. Taylor, Principal
    John H. Taylor Consulting, LLC
    2604 Sevier Street
    Durham, NC     27705

    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987