Can Gary Lineker deduct his charitable donation to a homeless man?

July 13, 2011 Gary Lineker, the former high scoring British footballer, was out for a show with his wife last month when he was approached by a homeless person asking for spare change. Lineker graciously gave the man the change from his pockets. Lineker is currently married to actress and model Danielle Maria Lineker and works as an announcer for the English language football coverage for the Al Jazeera network, which is broadcast throughout much of the Middle East.

Gifting versus giving to charity.
If you would like a tax deduction for the money you donate it must be given to a qualified charitable organization. What is a qualified charitable organization? It is an organization that is operated exclusively for religious, charitable, scientific, literary, or educational purposes, or for the prevention of cruelty to animals or children. Gifts of cash or property to these organizations are tax deductible.

You are free to gift whatever you want to someone, but be sure you understand the IRS tax rules. Gifts can not be disguised forms of compensation and individuals can not use gifts as tax deductions. However, business owners can deduct the cost of a gift up to $25.00. The IRS will let your business deduct $25 or less for business gifts you give to any one person during your tax year. Those receiving the gifts do not have to report the gift as gross income.

 
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