My scandalous mind is always thinking, how can I protect my money? And it hit me! I live next to the Salvation Army! According to the IRS I can donate 30% of my AGI and submit charitable contributions...(see below)
Limits on the Charitable Contribution Deduction
Your charitable contribution tax deduction may be limited. There are limits specific to charitable contributions, and there are general limits on itemized deductions.
50%, 30%, and 20% Limits on Charitable Contributions
* Generally, you can deduct cash contributions in full up to 50% of your adjusted gross income.
* Generally, you can deduct property contributions in full up to 30% of your adjusted gross income.
* Generally, you can deduct contributions of appreciated capital gains assets in full up to 20% of your adjusted gross income.
Charitable contributions in excess of these limits can be carried over to the following tax year. The excess contributions can be carried over for a maximum of five years.
Ok ok so clearly we're not giving away our shit! So who's shit are we contributing?? Give away the FREE STUFF! w00t w00t! People give away couches, pianos, desks, chairs, everything! So let's say you make 100k a year..if you got a beater truck, you can on your weekends acquire 30k worth of stuff to deduct. Not sure how that will look on taxes, but if I get me a beater truck, keep track of the gas and expenses...I'll let you know how this benefits my taxes!
Too bad it's not tax credits hehehe, but think this could be the way to stick it to the government, and help out your fellow mankind. Sooooo what's the drawback? Well if you start making heavy donations, expect to get audited by the IRS. If in the past you haven't been legit, they will pickup on it. DO NOT LOSE ANY RECEIPTS!!! Get yourself an organizer. Do by month, then year! Keep all receipts for 10years. If you can get a digital sender, I would scan those puppies in.
Any thoughts? I'm really curious how much I would pay....oh! Hello Mr. Link :-)
KnowLedge is POWER
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