The government benefits from disasters?

[Let'sgoflying!]

probably not shocking news but during our fire (Texas' largest fire in recorded history - google Rockhouse Fire) we had large out of pocket expenses; costs which will never be recouped in full.
Some private citizens have made donations towards the supplies we used (we charged no one for anything; would never consider it for labor). My accountant says there is no provision for disaster-related tax deductions so it seems if someone pays me 100$ towards bandages and pain meds for animals injured in the fire, then I can only put about somewhere in the order of $75 of that towards the animals; the IRS takes the rest. (Yes I am aware the supplies are tax-deductible.)

 

[Let'sgoflying!]

Maybe these should be treated as personal gifts to keep the gov hands out of our pockets.

 

[bsdunek]

I give to help, not for deductions. However, I still take deductions where they are available. We tend to give through our church, which makes it deductible. The United Methodist church has the United Methodist Committee on Relief (UMCOR). You can designate where your gift is used. I'm sure many other organizations, both religious and secular have similar programs.
If you're interested, UMCOR is at http://new.gbgm-umc.org/umcor/

 

[ebacon]

You can treat the money as gifts. In that case the person giving the money pays the tax but only if they have exceeded their lifetime gift allowance. In 2010 it was $1M. The person receving the gift pays no tax.

A test as to whether the money was really a gift is to look at the value received by the person giving the money. If they gave $100 and got $1000 worth of goods and services then it's not a gift. On the other hand if they gave $100 and got little or nothing in the way of goods and services then the money can probably be categorized as a gift.