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Okay, so you can donate $100 to charity, feel warm and fuzzy because it’s tax-free or however you want to think about it, and pay exactly the same amount of tax
by amluto 4y ago
Okay, so you can donate $100 to charity, feel warm and fuzzy because it’s tax-free or however you want to think about it, and pay exactly the same amount of tax as if you didn’t give the gift.
- op00to 4y agoYes, that's how the standard deduction works.
- cduzz 4y agoRight. You can also create a charity, which you run, and donate millions of dollars to it, and write that off against your taxes as a charitable donation. Then, because you run that charity, you can still spend the money (mostly) as you please.
- amluto 4y agoExactly. But the point here is this is only available to people who wish to donate more than about $13k per year.