2007-02-22 14:02:06 · 3 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
What you're doing by claiming a tax deduction for charitable contributions is reducing the amount of income you're taxed on. So the tax benefit is there but not a great deal, and it's not based on a percentage of the donation.
What you're probably seeing is 50% on the computer screen... that's what kind of organization it is. Most charitable organizations are classified as "50% organizations" by the IRS and what that means to taxpayers is that 50% of their donations are deductible.
One thing you want to be sure of is that there is a new law stating that goods contributed must be in good, usable or resellable contition when contributed. You must also get a statement from the organization when you contribute these items.
2007-02-22 15:55:55 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Yes indirectly. If you deduct a value of $100 and you are in a 25% tax bracket the deduction saves you tax of $25.
2007-02-22 22:11:52 · answer #2 · answered by spicertax 5 · 0⤊ 1⤋
WHAT IS THE PURPOSE OF THE DEDUCTION?
TO RECEIVE A RETURN ON THE VALUE OF THE GOODS.
BY SUBSTRACTING IT FROM YOUR TOTAL TAXABLE INCOME...
2007-02-22 22:09:20 · answer #3 · answered by cork 7 · 0⤊ 1⤋