4 ms·
> then pay yourself a ridiculous salary for running the organization with the rest of the money So instead of paying 20% cap gains, they choose to pay 37% fede
by mrep 4y ago
> then pay yourself a ridiculous salary for running the organization with the rest of the money
So instead of paying 20% cap gains, they choose to pay 37% federal income taxes + state?
- trs8080 4y agoYes, because pocketing money directly from fundraising activities for a 501c3 is illegal, regardless of if you pay capital gains on it.
- mrep 4y agoI'm not sure what you are saying. Donating capitol that has gained value to a non-profit to then use to pay yourself a salary with causes you to pay more taxes than if you had just realized the gains and skipped the non-profit as cap gains taxes are lower than income taxes for the top bracket. OP "legal scam" causes them to pay more taxes.