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Money Tip: Choose a Tax-Deductible Wedding Venue

Mon, 04/28/2008 - 12:02pm by SavvySugar
1,028 Views - 8 comments

The Knot's Annual Real Wedding Survey found that about 45 percent of a couple's wedding budget is spent on the reception venue, and based on the average $27,882 budget that amounts to about $12,722. One way to save on your venue is to hold your reception somewhere that's an approved nonprofit organization — your cost may be tax deductible as it could be considered a donation to the organization. It doesn't take too much thinking outside the box to come up with this type of venue as several museums and historic landmarks fall into consideration. Just be sure to ask the organization for a statement that includes the amount of your contribution, otherwise known as the facility fee.

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8 Comments Add a Comment

  • gailers's picture
    gailers
    1

    That's actually a really good idea. I would have never thought a wedding venue could be a write off. I'm going to let all my friends know about this. The only problem would be, most of my friends prefer church weddings.

    36 weeks 2 days ago Report Comment
  • citizenkane's picture
    citizenkane
    3

    I would definately consider having my reception at a museum or historcal landmark! I had no idea that it was tax deductable, either. If you live near a University, you may want to consider some of the buildings on campus also. Those may fall into this category.

    36 weeks 1 day ago Report Comment
  • lawchick's picture
    lawchick
    4

    The amount that would be tax deductible would be the amount you paid minus the fair market value of the thing(s) you received. Just like if you donate $100 to a charity and get a t-shirt, you aren't allowed to (supposed to) deduct the entire $100 on your taxes. You could say the FMV of the t-shirt is $15 and then deduct $85.

    I don't see how fees paid to a non-profit (I got married at a museum) could be tax-deductible, because you are getting something in return (the space!). There is a big difference between paying a set fee and making a charitable contribution.

    36 weeks 1 day ago Report Comment
  • SavvySugar's picture
    SavvySugar
    5

    lawchick-

    In my understanding, the cost of your site fee could be considered a donation to support the upkeep of the facility.

    36 weeks 1 day ago Report Comment
  • lawchick's picture
    lawchick
    6

    Savvy, even if the facility labeled your "fee" as a "donation", you would still have to deduct the fair market value of what you received. I paid $1200 for the facility fee at the art museum where I got married. I would say the FMV of what I received was worth at least that much, if not more (compared to facility fees for other similarly-sized venues).

    36 weeks 1 day ago Report Comment

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