You have to discount the fact that you may not get a tax advantage when helping some one else out. I don't like paying taxes either but I won't let that stop me from helping someone. sometimes you just have to think of how much help you would be giving.
The last time I checked (about 3 years ago), gifts up to $14,000 (per year) were not taxable. IIRC, there may also be a cummulative limit.
Perfect example of the unfortunate necessity of laws to govern human behavior. If this were somehow allowed, the plethora of dickheads in the gene pool (starting with the lawyers?), would be abusing it for their own, other than charitable, benefit.
Swingman wrote in news:A9Cdnc5P1IHFocHMnZ2dnUVZ snipped-for-privacy@giganews.com:
Would be a long, long discussion if we are going to talk about what should or should not be deductible.
Just for those who don't realize it, deductions such as chariable deductions, reduce your taxable income only, they are NOT credits against a tax bill. This makes deductions highly regressive in their benefits: Example: If I give $1000 to the food pantry, which is a deductible expense, the benefit I get depends on my top marginal tax rate. Therefore giving is most "profitable" for those whose income is highest. Tax rates for 2013 for married filing jointly:
10% on taxable income from $0 to $17,850, plus 15% on taxable income over $17,850 to $72,500, plus 25% on taxable income over $72,500 to $146,400, plus 28% on taxable income over $146,400 to $223,050, plus 33% on taxable income over $223,050 to $398,350, plus 35% on taxable income over $398,350 to $450,000, plus 39.6% on taxable income over $450,000.Obviously my $1000 cost me only ~$600 if I have the highest income, but costs me $900 if I earn less than $17,850.
Leon wrote in news: snipped-for-privacy@giganews.com:
+1"Swingman" wrote
As explained to me by my accountant, I am certainly not one, this is how it works.
You have a limit to how much you can "gift" anybody per year and per lifetime. Anything above that means you have to pay tax. The recipient rarely pays this tax. But you can make a "direct contribution" toward tuition and medical expenses. These do not count against the above mentioned limits. But the funds must be paid DIRECTLY to the educational institution or medical facility/provider. There is no tax write off involved in any of these scenarios. You would need to make a donation to a federally (IRS) recognized charity for that to happen.
Again, I am not an accountant nor do I play one on television.
Another reason that the poor should be under the 39.6" tax rate and the rich under the 10% rate, The poor would benefit more than the rich for charitable contributions. :~O
His was simply a remark on how much more could be raised if that were the case ... and I agree that could be a large factor in any decision to donate.
That said, and judging from Mike's generous donation to a complete stranger, I'm absolutely certain, and without doubt whatsoever, that tax destructibility wasn't a factor in his decision to do so ... but instead, an act of big heart and an inherent kindness. :)
Leon wrote in news: snipped-for-privacy@giganews.com:
Yeah, sure ... You go first, mate :)
Thank you and your assumption is correct. I have all of my family almost converted to doing charitable contributions for Xmas rather then spending money on things we don't need. My sisters usually give things they have canned from their gardens and I give things I've made in the shop. Generally just enjoy some gag gifts and a great prime rib dinner.
Mike M
LOL!!!
Totally agree but some times you "just do" rather than think. Did not mean that to sound derogatory!
I saw it that way too but not every one thinks that way.
I didn't take it that way Leon, and I pretty much did it because that evening I was in the mood to help someone out. Swingman pretty much nailed it so everything is good. I could remember when this started and reading what Karl went through with the health insurance providers. I'm going to refrain from starting a conversation on health insurance but I was happy to help even with out the tax deduction.
Mike M
Good to know Mike.
To the many of you here on the wRec who helped to make this possible, thought I would share this.
MRI's this week show a significant reduction in tumors, and the bone replacement shots, though extremely painful, are visibly working; the doctors have gone from cautious optimism, to full blown optimism, to the point of reducing the number of further treatments, and are now saying that surgery may not be needed.
Michelle texted this from the hospital last night, just before the 49th treatment:
(in typical female fashion, that unicorn has been through every one of the 49 treatments with her and, instead of a long face and a 'woe is me' attitude, she has dressed as if going to a birthday party for most of them ... the young lady has as much fortitude and bravery has any Navy SEAL).
Thanks again guys ... you know who you are.
Great news! And is that a unicorn???? I thought it was Pandy in pink! :~)
That's good news, I hope more good news to come.. Good luck.
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