Political contributions is not a deductible business expense.
Why it is not deductible
Payments to a political party, a candidate, a campaign or a political action committee are not deductible, and neither is lobbying to influence legislation at the federal, state or local level. The disallowance follows the purpose of the payment rather than the name on the invoice, which is why it also catches part of your trade association dues and why it catches advertising placed in political material. Nothing goes in Part V and nothing goes on Schedule A either.
Log it once, with the line already on it. Type an expense in plain words in ClaryBook and it is filed with a date, vendor, amount and what it was for, so the number your preparer needs for political contributions is already written down.
Start for freeWhat political contributions is confused with
- Line 27a, other expenses
- Trade association dues are deductible on line 27a, but the association must tell you the share it spent on lobbying and political activity, and that share has to be backed out.
- Line 8, advertising
- Advertising is normally line 8, but an advert in a convention programme, a souvenir book or any publication of a political party or candidate is specifically not deductible even though it looks like advertising.
Examples people try to deduct here
- $1,000 to a candidate's campaign: not deductible
- $250 to a political action committee: not deductible
- $2,400 to a lobbyist working a state bill: not deductible
- $500 advert in a party convention programme: not deductible despite looking like advertising
- $450 association dues where the notice shows 18% went to lobbying: deduct $369
What does not belong here
- Claiming a campaign donation as advertising because your business name appeared on the material.
- Deducting the lobbying share of association or chamber dues.
- Deducting the cost of a fundraising dinner for a candidate.
- Treating a political contribution as a charitable gift on Schedule A.
The limit that applies
The disallowance covers contributions to candidates, parties and political committees, lobbying to influence legislation, and advertising in any political publication or at a political event.
What to keep
If your association dues include a disclosed nondeductible percentage, keep the notice with the invoice and record the net amount you deducted, since that disclosure is the only support for the figure.
Other things that are not deductible
| Expense | Line |
|---|---|
| a business suit | Not deductible |
| a government fine or penalty | Not deductible |
| a parking ticket | Not deductible |
| a personal expense on the business card | Not deductible |
| a spouse's airfare on your business trip | Not deductible |
| a traffic ticket | Not deductible |
| an unpaid invoice | Not deductible |
| commuting mileage | Not deductible |
| country club dues | Not deductible |
| estimated tax payments | Not deductible |
| federal income tax | Not deductible |
| groceries for your home | Not deductible |
Related lookups
Sources
This page explains how Schedule C lines work. It is general information, not tax advice for your situation. If an expense is large or the answer turns on a fact about your business, confirm it with your tax preparer.
Looking for a different expense? The full Schedule C line lookup has every line from 8 to 27 with the expenses that belong on each, and Schedule C expense categories walks the whole form in order.
Log it once, with the line already on it. Type an expense in plain words in ClaryBook and it is filed with a date, vendor, amount and what it was for, so the number your preparer needs for political contributions is already written down.
Start for free