Did Oprah receive a tax break?

Question

When she gave money to a girls school in South Africa, it seemed strange to me that her charitible efforts would stray so far from home. Everything happens for a reason, especially when money is involved. So, did Oprah accountants find a loophole in the tax laws? Is it better to give overseas, than at home, from a tax standpoint?

Answer 1

As long as the charity is a registered 501(c)3 charity the donations are tax deductible. There is no requirement for the charity to be US based and some foreign charities are registered. That said, there is no limitation on a US based charity spending its money anywhere on the planet so it's really a moot point.

There's no doubt that she did receive a tax break for her charitable work, at least to the amount she directly donated and spent out of pocket. The value of her own time is not deductible though. Same rules as if you put $20 in the Salvation Army kettle at Christmas time. Just a much larger donation on her part, that's all.

Answer 2

People with very high incomes do not always get a tax break when they give to charity. There is something called the Alternative Minimum Tax that keeps people with high incomes and lots and lots of deductions from taking a deduction for the things you and I might get a deduction for. Charitable contributions are included here. Sometimes people do good things just for the sake of doing it. I'm not an Oprah fan, but with the money she makes, she doesn't get a full deduction for what she gives to charity, nor for what she pays in mortgage interest on a second or third home, nor for what she pays for in medical expenses. People with lower, more "normal' incomes can deduct all of these things to a much greater extent than Oprah or Bill Gates.

Answer 3

You always receive a tax break when you give to charity. Most likely she did. Alot of that money that she donated though I think came from her corporation or the Oprah show and not from her own pocket. But I'm sure that the Oprah show got a tax write off.

Answer 4

She has a foundation that is US based that she gives the money too. The foundation then funds the schools. There is no monetary reason for building in Africa -vs- US.

She has made it very clear that she built the school there because the children there appreciate the chance to get a better education. She mentioned if she did it in the US the kids would want X-box in their rooms and would complain about the food.

Answer 5

Many, many hundreds of thousands. on the only hand, FDR pulled us out of the republican-created great melancholy. on the different, Clinton ran the only surpluses interior the previous 40 years, and averaged a hundred and sixty,000 new jobs consistent with month for the time of his finished term. this is the optimal ever for an 8 3 hundred and sixty 5 days era, BTW. next time some homework would desire to help you from posting something so surely refuted. lots of the ideal numbers are on the link below.