Hot answers tagged

5

According to the Australian Taxation Office, Organisations entitled to receive tax deductible gifts are called 'deductible gift recipients' (DGRs). You can only claim a tax deduction for gifts or donations to organisations that have DGR status. On the same page, they provide a link at which you can check the DGR status of the organisation of interest: You ...


3

There is no net gain. I am in the 22% bracket and when I donate $1000 to charity, I see my net tax bill drop $220. When I ‘donate’ to someone in need directly, there’s no such deduction. Which is why it’s better from a tax perspective to use a registered charity. Similar to how I look at mortgage interest - the tax deduction can be a discount on the mortgage ...


3

While I do understand, that the government loses money in tax incomes, I don't understand how this directly increases the tax burden on other tax payers (except for, in the long term, the government might raise taxes to make up for lost tax revenues). It doesn't directly do anything in particular. If a charitable donation is tax-deductable, then the donor ...


2

Despite being about money and personal finance this is a political statement by the authors that ignores relevant facts. The most prevalent fact is that both countries mentioned deficit spend. Perhaps a more relevant question is why governments are over spending so much? Also it displays an attitude, by the authors that is very harmful. Namely that the ...


2

I can't comment on Australia tax law but I can answer that in the United States a 501(c)(6) corporation isn't a charity. 501(c)(6) organizations are a type of non-profit. That means that they don't have to pay income tax. That doesn't mean that people that donate money or stuff to them can claim the charitable deduction. Charities are 501(c)(3) non-profit ...


2

Saying it costs other taxpayers is a very simplistic analysis. This would be true if: 1. The government absolutely MUST spend a certain amount of money. 2. If it doesn't receive this money from one person it must raise taxes on someone else to make up for it. And 3. The amount the government collects in taxes can be statically determined as gross national ...


1

You basically have the the concept correct. If you donate $X to a charity it will save you Y% of your donation in taxes. Donating money, or stuff, to a charity never saves as much as the value of the item. There could be a few very rare edge cases where donating money or stuff gets you under a threshold, but since the the tax deduction takes place late in ...


1

Isn't the tax system progressive, so that your first (rough numbers from memory most likely inaccurate) say, $12000 gets taxed at X%, while your next, say, $8000 gets taxed at Y% (Y>X), and your next $50000 gets taxed at Z% (Z>Y). The term for this is "marginal tax rates". In this case, supposing you had earned $22,000 in a year and then ...


1

The answer you are looking for is to create a CRUT. Charitable Remainder Unitrust. https://en.m.wikipedia.org/wiki/Charitable_remainder_unitrust A synopsis You can buy/sell the investments inside the trust as you please with no tax consequences, similar to an IRA, except that there is no limit to the amount you can put in the trust. You have the option of ...


Only top voted, non community-wiki answers of a minimum length are eligible