Charitable Donation deductible for Investment Inco

[Deleted]

Hi everyone,

From time to time I've posted tax questions on MSN site so thank you to all of you who moved over.

Does anyone know whether a charitable donation can be deducted against investment income?

Don't let my status in Germany confuse you. The tax treaty between the two countries exempts our US Oil Royalty income from German income taxes and that is effectively our only US income for 2010. Germany does not recognize charities outside the European Union so I'm wondering if I can deduct a $1000 donation I made against approximately $23,000 royalty income.

Many thanks for your help!

[commentator]

If you are a U.S. citizen or resident alien and have any income that is taxable by the United States from any source then you can take a charitable contribution deduction on your U.S. return. That is only worth doing if your total itemized deductions exceed the standard deduction for your filing status. The contribution has to be to a U.S. based charity.

[Deleted]

Thanks!

[mwcpa]

I concur with commentator.... you may claim charitable deductions on your US tax filing.... get a copy of form 1040 schedule A....

Remember Bonnap.... the US tax law requires that all citizens report all income from all sources on a worldwide basis... so while it may be exempt in Germany, where you are apparently a resident, it may not be exempt in the United States.

[Deleted]

Thanks MWCPA. We do! Our US tax return for 2009 was 218 pages long!