How to save taxes with a Virtual Wedding in pandemic times?
As the pandemic COVID-19 continues to spread across the United States affecting millions of people, there has also been a complete shutdown for many businesses including the wedding industry. Many couples who had planned for a wedding during this year have either canceled it or have postponed it. However, many couples have resorted to other alternative means of solemnizing their wedding i.e. by Virtual wedding.
With social distancing being the necessity of the current times, many couples have also resorted to performing their weddings by using modern-day technologies. Weddings via Zoom or through other modes of video conferencing are the current trend now. So, are you also thinking of having a Virtual wedding? You would be able to save a considerable amount of money on expenses like food, venue, etc. and would also have opportunities to save tax.
Tax deduction ideas for virtual wedding
In case you got married in 2019 or you are planning for a virtual wedding this year, these tax deduction ideas will be of great help to you.
Your wedding gown
You might think that what would be the tax deduction on the purchase of the wedding gown which you have been dreaming of. However, the best part is that you can be able to donate your beautiful wedding gown and claim a tax deduction in the form of a charitable contribution. It is also feasible that the price of your wedding dress can help you in obtaining an appraisal. In case, the wedding dress costs more than $5000 then the wedding gown must also be appraised.
If you are donating your wedding gown, then you should preserve the receipts and documentation to help claim your tax deduction. There cannot be a feeling better than the feeling of content which you would experience in donating your precious wedding gown. You would feel so happy that the gown which had a special place in your heart has come to someone else’s aid or help. You must ensure that when you are donating your wedding gown, you must donate it to a 501(c) (3) qualified organization i.e. a non-profit organization.
Wedding gift registry
As your wedding date approaches, you are sure to prepare a traditional gift wish list. If you are planning for a wedding this year you can create a charity registry as well along with the traditional gift wish list. The charity registry can be created easily by registration on myregistry.com and you can motivate your guests to make donations for a good cause. These donations can be used to claim tax deductions so, your guests would be happy to donate and even celebrate with you. There would be a noble cause for which your guests would be contributing and it is sure to make them feel good.
You should be well aware that there are two basic requirements to be met if you intend to claim tax deductions for the charitable donations that you are making.
- You should ensure that you must have enough tax deductions so that you can obtain the benefit from claiming the itemized deductions.
- Moreover, as said earlier the donations must be made for a nonprofit organization to be able to claim the tax deductions.
Due to the pandemic COVID-19, weddings and social gatherings are not permissible; so, a virtual wedding would is the best alternative solution for the current situation. However, wedding favors in times of virtual wedding can sound to be quite impractical. But, you can plan for making a good donation on behalf of all those who attended your special day. This would help in serving two major purposes i.e. – a donation can be of great help to the needy and it would also help you in achieving a tax deduction.
Hence, in these distressful times, cancellation of wedding or postponement of wedding for an infinite period can be even more distressful. A plan for a virtual wedding can be your mood lifter and implementing certain charity plans associated with your wedding can make it sound even more interesting. Your charity receipts and acknowledgments should be intact for a tax deduction which can increase your tax refunds and boost your funds for your married life.