Open Water Tax Deductions

This type of event falls under what the IRS calls "Charity Benefit Events", similar to a charitable ball, banquet, show or sporting event. If these events have an established charge (ie the entry fee), you may only deduct the amount you pay which exceeds the entry fee. The logic here is that you are receiving a benefit by paying the fee (in this case, participating in the event) and only the monies you pay which exceed the entry fee benefit the organization, and not you. So no. These entry fees are not deductible. For a detailed explaination, check out Publication 526, "Charitable Contributions", available on the IRS website, www.irs.gov.

OK, but say for instance in the case of the Great Chesapeake Bay Swim, the organizers state that 38.6% of the entry fee goes to administrative costs and t-shirts, and 61.4% of the fee goes directly to charity. Would the 61.4% be deductible? Thanks, Hopper www.swimvacation.com

The question the IRS would ask is if the entry fee is 60% higher than entry fees for comparable swims. If it is, then the 60% would be deductible. If it's not, then no. If the charity took the trouble to point this out, I suspect that it is deductible, but I'd want some comparables to be sure.

Ensignada, Thanks so much for the advice. With all the open water swimmers bucking up for all these races, I hope the potential deductions don't throw the US economy into a tailspin........... Hopper www.swimvacation.com

Really. You open-water people are responsible for the budget deficit. :thhbbb:

Come over to the dark side, Ensignada! Some good ocean races up your way...... :cheerleader:

Maybe we should create a list of 07' open water races that have deductible portions of their entry fees. So far we know that about 60% of the Chesapeake Bay Swim can likely be deducted. Hopper www.swimvacation.com

Are you listing these entry fees as deductions on your tax return? Is there a swimmer/accountant who would like to stick their neck out with some advice for us? Great question, but I don't make enough to donate enough in the course of a year to report any of it The organization did, however, send me a couple of letters about my donation, I believe on the "you gave $xxx and did not get any goods or services in return" lines.