How much taxes does it avoid?
2006-09-25 16:17:15 · 4 answers · asked by Anonymous in Politics & Government ➔ Law & Ethics
if a business gives money to charity, it will get to deduct that money from its income. so if the taxable income of the business for the year was 1 million, and it gives 1 thousand to charity, it will get to deduct that 1 thousand from its income and will now have to pay taxes on 999,000.
2006-09-25 16:21:01 · answer #1 · answered by Sadie335 2 · 1⤊ 0⤋
It pays the same amount of taxes, but when filing at the end of the year, the amount given to charity will reduce the gross income and that will cause less taxes to be owed to IRS.
2006-09-25 23:22:09 · answer #2 · answered by Anonymous · 1⤊ 0⤋
Charity donations are tax deductable.. and the amount of deduction would depend on income level.. tax bracket.. and amount of donation.. a good accountant coudl help you determine what , if any , donation amount would benefit you.
2006-09-25 23:25:19 · answer #3 · answered by limgrn_maria 4 · 0⤊ 0⤋
Sadie is so smart!!! but you don't have to be a business. however, if you want to take advantage of the tax law it has to be large enough to where you are forced to itemize deductions
2006-09-26 13:49:48 · answer #4 · answered by Anonymous · 0⤊ 0⤋