People keep talking about charitable tax write-offs as if there's some sort of profitable benefit to them. Either I'm daft, or there are a lot of people out there who are very confused about the us tax code.
How does this in any way benefit Mark? He can only write off a portion of his income (yes, even if he carries it forward). So, he's getting back what, like ~40% of this back as a deduction(depending on what bracket he's in)? It's still 250M dollars out of his bank account. There's no math that makes this work our in his favor. (Is there some kind of trick here that I'm missing like reducing your income, claiming the deduction as unrealized losses, and then hedging against the stock price decreasing over time? Sort of like a short?) I just don't see it.
What am I missing here about the tax code that results in any charitable tax write off resulting in a net benefit for the individual? Seriously, I'd love to know how to take advantage of this loophole myself.
How does this in any way benefit Mark? He can only write off a portion of his income (yes, even if he carries it forward). So, he's getting back what, like ~40% of this back as a deduction(depending on what bracket he's in)? It's still 250M dollars out of his bank account. There's no math that makes this work our in his favor. (Is there some kind of trick here that I'm missing like reducing your income, claiming the deduction as unrealized losses, and then hedging against the stock price decreasing over time? Sort of like a short?) I just don't see it.
What am I missing here about the tax code that results in any charitable tax write off resulting in a net benefit for the individual? Seriously, I'd love to know how to take advantage of this loophole myself.