OS Neutral Can you actually do tax deductions from Humble Bundle?

[tzhu07]

From what I understand about tax code, you can only tax deduct if your charitable contribution is a gift. But with Humble Bundle, it's not. I'm getting a bunch of games in return.

So is this a gray area or what?

 

[Dirtyharry50]

Well, I guess you'd have to consult a tax attorney or contact the IRS (assuming USA) or equivalent where you live.

Honestly though, is the amount even consequential enough to bother with? I guess it potentially could be if you want to spend a lot but in that case, why not just give to the charity directly?

I think it is nice Humble Bundles do this but I'd never even consider the tax consequences. I just wouldn't bother myself.

 

[tzhu07]

I think it is nice Humble Bundles do this but I'd never even consider the tax consequences. I just wouldn't bother myself.

I didn't bother with it as well on my previous tax returns, but I was more asking just out of curiosity.

 

[deadwulfe]

The conservative answer for US tax law is that the IRS expects there to be a value assigned to the goods/services received in exchange for the donation. The amount of your donation in excess of the value of goods/services received is the deductible amount of your donation. You received the license to play the games and you can reasonably estimate the value according to what they cost outside of the Humble Bundle. The amount of your payment in excess of that is what your deductible donation would be.

The more aggressive stance would be to deduct the portion you selected to allocate towards the charity.

EDIT: You can see with the conservative stance how it's possible to allocate 100% of your purchase towards the charity and still have zero allowable deduction on your tax return if you paid $5 for $100 worth of games.