Tithe to someone else

[lhbc-donate]

Sue's Financial advisor,Bob, told her that her income tax receipt for her tithe does not give her any real tax break. Bob suggested that Sue put her tithe into an envelope with her daughters offering # so the daughter could get receipted for it -making it beneficial for the daughter. Sue lives with the daughter and would love to show her appreciation for all she does. If Sue puts cash into the envelope - no one would know. If Sue puts her personal cheque into the envelope, someone would wonder if Sue made an error. Sue wants to know if the financial advisor is trying to be sneaky? So do I ...Carey

[NeilZ]

Sue's Financial advisor,Bob, told her that her income tax receipt for her tithe does not give her any real tax break. Bob suggested that Sue put her tithe into an envelope with her daughters offering # so the daughter could get receipted for it -making it beneficial for the daughter. Sue lives with the daughter and would love to show her appreciation for all she does. If Sue puts cash into the envelope - no one would know. If Sue puts her personal cheque into the envelope, someone would wonder if Sue made an error. Sue wants to know if the financial advisor is trying to be sneaky? So do I ...Carey

There's nothing sneaky about it, sure the daughter would get an additional deduction from her taxes for the additional contribution, but since mom is living with her daughter, thus providing some support, I'm not sure if there is any issue here at all.

I'm wondering if Sue could even claim mom as a dependent since she does provide her a home??

[dsnilsson]

Sounds to me like mom is actually giving the daughter a gift which, as long as its less than $12,000 or so per year, does not pose any tax issue. The dependency issue is a much broader discussion.