Are loans to Pajebal tax-deductable?
For those only lending money, not donating it, there is no tax-deductibility because there is an expected payback. Concerning donations, Pajebal’s 501(c)3 non-profit federal tax-exemption application (Form 1023) was prepared with the aid of pro bono services from a premier global law firm, and is currently being reviewed by the IRS. Although Pajebal does not provide any instruction regarding your personal tax preparation for deducting charitable donations, we will at least provide you with a relevant quote from the IRS publication entitled Applying for 501(c)(3) Tax Exemption Status: “While an organization’s Form 1023 is waiting for approval from the IRS, the organization may operate as a tax-exempt organization . . . Although donors have no assurance that contributions are tax-deductible for federal income tax purposes until the application is approved, contributions made while an application is pending would qualify if the application is approved. However, if the application is disal
