Tax Deductible Giving

Just giving money to a friend who helps you isn't tax deductible unless he's a certified, non-profit organization.

QUESTION: Sergio asks Dave to explain his definition of giving. Is giving to a friend who is down on his luck and helps Sergio with his business tax deductible? Dave explains.

ANSWER: Giving to someone who is not a certified, non-profit organization is not tax deductible. If you pay your friend for doing work, you can write it off, but then he has taxable income. Just giving someone money doesn’t make it deductible.