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If the landlord donated $50k to a charity, is that a writeoff? If that charity rents $45k of space from the donor does that count? A similar loophole was being

• kgwgk 8y ago
  I'm not sure if you read the link I sent. If I give $100k to a charity and they use the money to rent something from me for $100k I won't be paying any less taxes that if I had not done the whole "tax dodging" scheme... [1] Maybe it was possible to deduct "virtual" donations in the UK, but it's not hard to disallow if people abuse the system. I could also donate a stone to a charity saying that it's worth $1bn to get a deduction. Would that count? Edit: reading your link it seems unrelated to deductions on taxable income. It's about council taxes on businesses, which are lower for charities than for regular businesses or unoccupied stores. So it makes sense for the owner to let a charity use the space rent-free and pay their 20% of the tax instead of paying 100% of the tax for the empty property. [1] Actually I may end up paying less taxes if my costs raise, because I will be making a lower profit. But that would result in lower after-tax profits, which is probably not the objective of the scheme.