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RE/MAX and charitable donations - who's charitable contribution is it?

By Bobbi Herman

Real Estate Agent with Realty One Group

February 12, 2008 04:53 PM

I know we should consult a tax professional, but I was thinking this may be a question others have had.

As you may know some RE/MAX agents elect for a portion of the closing commission to be donated to the Chidren's Miracle Network. The donation is made in the name of the client, and the client receives a letter from the charity thanking them for the donation.

I have always wondered whose charitable deduction is this? Is it a the RE/MAX agent because the donation was taken out of their commission or is it the client's because the donation was given in their name?

I can see it both ways. The client didn't elect to make the charitable contribution. The agent signed up to be a part of the program. I think the key to the question is whose money was it when it was donated...

I'm not sure if we can resolve it in a blog, but I am curious what others think.

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Karen Anne Stone

New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX

Fort Worth Real Estate

Bobbi: I am going to guess that you get to claim it as a business expense, because it is a part of your commission that you have earned, but does not go to you. As a business expense, it probably would not be listed as a charitable expense, but more as a refund or rebate on your schedule C. As always, please consult with your tax professional.

It also might have to be claimed by your client as either income or a gift from you, I am not sure, but then it would be a deduction as a gift from the client to the charity. Just my guess.

Feb 12, 2008 05:01 PM

Lynne Pope

eXp realty, MFA,Hermosa Beach,Redondo Beach,South Bay - Los Angeles, CA

"Out of the Blue" solutions for perfect homes

I am a remax agent but new to the company. As I understand it we deduct the money from our commission. It is also tax deductable as such.

I know you can also talk to the childrens miracle network.

it is an affiliation of good ideas....for all remax agents are you Quality certified too?

Feb 12, 2008 05:25 PM

Mike Gambino

Prudential Patterson Realtors - Florissant, MO

GRI

I am not a tax person either, but I would have to say the only person that can claim the charitable contribution is the person that actually made the contribution, that, being the agent. It was their money that paid for it no matter who's name it was given. I have made donations to my Church before in memory of a deceased family member. The deceased can't claim the deduction. Just my logic.

Feb 12, 2008 06:13 PM

RE/MAX and charitable donations - who's charitable contribution is it?

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