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>> It's the equivalent of me donating most of my salary to a >> "charity" created for the purpose of paying my mortgage. I >> don't think many people here do
by IncRnd 11y ago
>> It's the equivalent of me donating most of my salary to a
>> "charity" created for the purpose of paying my mortgage. I
>> don't think many people here do that, or would consider it
>> if their accountant suggested it.
Not even close. But, actually people do that. Your example is off-base, because they pay tax on the fair market value of the rent they don't pay as if that missing rent were income.
What do you think the Bill & Melinda Gates Foundation is? The Clinton Foundation? Donations to purchase buildings at Universities? Donations to your favorite charity? Donations to get annuities?
This is something that many people and corporations do. It sounds like you enjoy it personally, but not when other people do it with greater amounts of money.
- icebraining 11y agoI don't think Bill Gates pays his mortgage with money from the foundation.
- IncRnd 11y agoAh, I see that my comment could be read that way. What I meant was the construct of donations for deductions and later benefit is what those foundations do.
- ghaff 11y agoFurthermore, given enough money involved, there are a variety of advantages to creating an entity like a foundation. No, it won't cover clearly personal expenses like a mortgage; that would be clearly illegal. But it can write off salaries, travel, entertainment, etc. related to the operation of the foundation in a way that would be difficult for an individual.