Question: When (the) president has a dinner to raise campaign funds and people pay $2,000 a plate to attend, does that money come out of their pocket or do they get to put that on their expense account?

No campaign dinners or other political contributions are tax-deductible for federal purposes, according to Carolyn D. Thompson, a certified public accountant in Coos Bay. The Internal Revenue Service tax code requires a business expense to be "ordinary and necessary" to be deductible.

State rules governing campaign dinners vary; under Oregon statute, a donor can claim a maximum tax deduction of $50 on such a political contribution, minus the actual cost of the dinner itself.

"Generally speaking, if I go to a dinner, then from the state I might get a contribution credit for any amount over what the dinner was really worth," Thompson said. "You're getting something in return for your money, so first you have to take that off."

Nonetheless, the federal stance remains clearly against claiming tax deductions on any political donation, she added.

"In federal tax law, if you're trying to influence legislation or backing a political candidate, that is not a business expense," she said.

- Howard Yune, Staff Writer