By: A.J. Cook


The Unabomber's brother, David Kaczynski, received a $1million reward this year for telling authorities his brother might be the unabomber and how to locate him.

Kaczynski promised that after he paid legal fees and taxes associated with the reward, he would give the remainder to Unabomber victims and their families.

Kaczynski won't get a tax deduction under present law. Gifts, no matter how charitable, are not deductible if they go directly to an individual.

Here are examples illustrating this rule: Eldon and Mary Brinley of Georgetown, Texas, paid over $900 for their son's expenses in his new job. He had traveled to a foreign country to do mission work for the Church of Jesus Christ of Latterday Saints. The IRS disallowed the couples deduction.

Even gifts to a charity, if indirectly for an individual, will not qualify. The IRS refused a deduction to a man who donated funds to a college earmarked for the education of his grandson.

Deductions, however, have been allowed where an officer of a church receives the funds and gives them to a missionary. The difference is the church decides how to spend the money.

Is this splitting hairs? You bet. But -- never fear -- Congress will save the day, at least in part. Senator Patrick Moynihan of New York and some other Washington politicians proposed legislation to give Kaczynski a deduction. Moynihan says the law would "increase the amount available to the victims and their families. ... Surely this is the least we can do."

The Moral: Everyone loves a cheerful giver except the IRS.

The Moral: To get a deduction, it is better to give than to receive.

A.J. Cook is a lawyer and CPA. His tax column appears weekly in numerous newspapers. Why isn't it published in your hometown newspaper? Ask its Business Editor to subscribe.

Copyright © 1987-2001 A.J. Cook All Rights Reserved
This information is not intended for use without professional advise.
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Released 11-9-98