Remix.run Logo
0x457 8 months ago

hmm, please correct me if I'm wrong, but donations just decrease your tax liability by the amount you've donated. It's the same as if you donated your pre-tax dollars to 501(c)(3) org.

toast0 8 months ago | parent | next [-]

The second sentence is mostly accurate, but the first implies something else.

If your taxable income was $50,000 and you donate $10,000, and (some other conditions) your taxable income would now be $40,000; same as if you managed to move the money pre-tax.

However. If you donate aprechiated capital assets, you get two benefits. Your taxable income is offset by the value of the asset, and the capital gains disappear. It's much better than selling the asset and donating the proceeds; and it's handy if you don't have good records for your cost basis.

0x457 7 months ago | parent [-]

Sure, but my point is - I'm parting ways with my money (be it cash or an asset with monetary value) either way without anything in return. It's just from tax perspective it essentially looks like I never had those money.

I see your point about cost basis tho, I didn't think of this and definetly will use this from now on. Thank you.

bluGill 8 months ago | parent | prev | next [-]

Right but you get to choose where your money goes.

8 months ago | parent | prev [-]
[deleted]