Re: Strange...I never thought of God showing his power via a suckout l
[ QUOTE ]
[ QUOTE ]
dear irs,
according to your calculations, i owe you $4,283 dollars. However, I donated $4,283 dollars to charity so I actually owe you nothing. Thanks!
rj
yeah. that wouldnt work...
[/ QUOTE ]
I'm pretty sure that you can (bold is from LegalZoom.com):
You may deduct a maximum of up to 50% of your adjusted gross income (AGI) (Line 36 on IRS Form 1040) for the tax year the donation was given.
Poker earnings = part of gross income
deduction = 0.5*AGI (if you give that much, which he won't have to in order to satifsfy his agreement with Jesus).
he would've had to rend unto caesar anyway, so he loses nothing, DUCY?
[/ QUOTE ]
Let me explain how this works: you pay taxes on your adjusted income so you still have less money in the end if you donate.
Example: You make say 10M, and say your tax rate is 20% (to make the math nice). You would pay 2M and have 8M left if you donated nothing. If you donated half, you would pay taxes on the other half, to 5M to charity, 1M to the IRS, 4M in your pocket. The donation did not cost you the 5M you donated, only 4M, but it still cost you.
Your donations cost you Ammount * (1 - TaxRate). IANAA, but I even think that donations cannot change your bracket (that is, you pay the % according to your income, but the % is applied to your adjusted income vice the % being based on your adjusted income).
|