Tax Tip: Political Contributions

Lobbying Expenses
You generally can't deduct amounts paid or incurred for lobbying expenses. These include expenses to:

1. Influence legislation,
2. Participate, or intervene, in any political campaign for, or against, any candidate for public office,
3. Attempt to influence the general public, or segments of the public, about elections, legislative matters, or referendums, or
4. Communicate directly with Covered Executive Branch Officials in any attempt to influence the official actions or positions of those officials.
5. Research, prepare, plan, or coordinate of any of these activities.
6. If a tax-exempt organization notifies you that part of the dues or other amounts you pay to the organization are used to pay nondeductible lobbying expenses, you can't deduct that part.

 
Covered executive branch official.   A Covered Executive Branch Official, for the purpose of (4) above, is any of the following officials.

• The President.
• The Vice President.
• Any officer or employee of the White House Office of the Executive Office of the President, and the two most senior level officers of each of the other agencies in the Executive Office.
• Any individual serving in a position in Level I of the Executive Schedule under section 5312 of Title 5, United States Code, any other individual designated by the President as having Cabinet-level status, and any immediate deputy of one of these individuals.

​Exceptions.   
You can deduct certain lobbying expenses if they are Ordinary and Necessary expenses of carrying on your trade or business, such as:

• You can deduct expenses for attempting to influence the legislation of any local council or similar governing body (local legislation). An Indian tribal government is considered a local council or similar governing body.
• You can deduct in-house expenses for influencing legislation or communicating directly with a covered executive branch official if the expenses for the tax year aren't more than $2,000 (not counting overhead expenses).
• If you are a professional lobbyist, you can deduct the expenses you incur in the trade or business of lobbying on behalf of another person. Payments by the other person to you for lobbying activities can't be deducted.

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