Memo to Gale and Cathy
In 2011, you hosted an international student, and you ended up incurring some expenses on the student in the course of his stay with you. A sum comprising $4500 was used on this student; according to you, $1,500 were used for food and clothing, $200 were used for medical care, $2700 were used for fair market value lodging and $100 for entertainment. You asked to be told whether any of the expenses incurred on the student you hosted could be deducted as a charitable contribution. In the following section, I will answer your inquiry as clearly as possible. You will know whether or not this amount qualifies for a charitable contribution.
Discussion According to the IRS website, some expenses incurred on an international student can be deducted as a charitable contribution. The government recognizes these expenses in cases where the person being hosted is not a relative or a dependant of the family that is hosting him/her. The government also considers instances where the person is also not a legal member of that family. However, this person must belong to an organization that qualifies to be classified under qualified organizations. These include organizations that are allowed to host interational students. In this case, the student you hosted belongs to an organization that is considered as such, and some expenses incurred on this student can be deducted as a charitable contribution (Lipson, 2008).
However, there are some expenses that cannot qualify as a charitable contribution. For instance, expenses that are related to family running do not qualify. Examples of these expenses include home depreciation, household expenses, insurance, repair of damaged items and other related things. In addition, certain limitations prevent some expenditure from being included in the spending that can be deducted as charitable expenses. For instance, a student can be placed under another person’s care by the state or local government agency. Such a case can not be considered for deductions since they are made by the government (Publication 526, 2011).
Deductable Amount In your case, some amount of the money incurred on this international student can be deducted as a charitable expense. However, certain guidelines must be followed to enable the deduction to be considered. First, the student must have attended twelfth grade or a lower grade so as to qualify for this deduction. In additions, the student must be a full-time student in the USA during his/her stay. The IRS website outlines these issues clearly, and your case will be considered for deduction since you meet all the standards. In the course of the student’s stay with you, a particular amount of $4500 dollars was incurred on the student.
The IRS deducts 50 dollars for every month that a student says with the hosts. In this case, it is vital to note that 15 days or more are considered a full month. The student hosted in your home stayed for nine months. Therefore, when this charge of $50 is multiplied by the number of months the student spent at your home, the total sum comprises $450. Therefore, the amount that can be deducted as a charitable expense is $450. This amount is recognized by the IRS, and it will be deducted once you submit proof of the student’s stay at your home.
Conclusion The amount incurred on the student will be deducted as a charitable expense once proof of your case is submitted to the IRS. The deductions will be conducted without delay once your request is properly approved. I advise you to submit your evidence to the IRS; thus, your case will be solved promptly.