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A little under $8 million, but same difference. Because your taxable income is $20 million less after the donation, and the top marginal tax rate (if you're ri
by SamBam 6y ago
A little under $8 million, but same difference.
Because your taxable income is $20 million less after the donation, and the top marginal tax rate (if you're rich enough to be playing this kind of game) is 37%.
The waters get a bit muddier with the capital gains tax you might be paying on the original sale, but presumably with the right accountant you're still saving some millions, whether 3 or 8 or 10.
- gruez 6y ago>A little under $8 million, but same difference. You also have to subtract the cost of the painting, unless you consider that a sunk cost (ie. you were already planning on buying the $10M painting)
- snovv_crash 6y agoOne person buys the painting at the auction, but then hundreds of others can deduct the tax if they already had a painting they purchased at a much lower value.