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Benefits Received Rule

June 14, 2018

What is the ‘Benefits Received Rule’

The Benefits Received Rule actually has two related definitions, one as a tax theory and one as a tax provision. The two definitions are:

1. The Benefits Received Principle, which is a theory of income tax fairness that says people should pay taxes based on the benefits they receive from the government.

2. A tax provision that says a donor who receives a tangible benefit from making a charitable contribution must subtract the value of that benefit from the amount claimed as an income tax deduction.

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