Office of Advancement

Federal Tax Advantages

Contributions to the Purdue Foundation are deductible as charitable contributions within the limits of the Internal Revenue Code. For those who itemize deductions:

Cash Gifts (checks made payable to Purdue Foundation) are deductible up to 50% of your adjusted gross income, with any carry over applied within five years.

Gifts of Appreciated Property (securities and real estate) held for more than a year are deductible up to 30% of your adjusted gross income with no capital gains tax on the appreciation. The deduction is based on the fair market value of the property given.

Gifts of Appreciated Property held for less than a year are deductible only up to your cost basis in the property with a limit of 50% of your adjusted gross income.

Gifts-in-Kind (books, livestock, works of art, etc.) are deductible at the full fair market value if they are related to educational programs or activities of the University and have been held for more than one year by the donor. Unrelated gifts-in-kind also may be made, but the deduction is in effect your cost basis in the property.

State of Indiana College Tax Credit
As an Indiana taxpayer, you may take a tax credit of half your gift to Purdue, up to a maximum gift of $400 if filing a joint return or $200 if filing an individual return. The tax credit directly reduces the "bottom line" of your state income tax, either reducing the amount you owe in taxes or increasing your refund. Visit the web site below to view and print Indiana College Credit Form CC-40:

http://www.in.gov/dor/taxforms/03pdfs/03-cc40.pdf