4 Mar
2001
4 Mar
'01
5:48 p.m.
> Also, people have a misconception of how useful a
tax deduction really is.
> Even a $1,000 donation only amounts to a few
dollars back on their return.
> I'm going to check with my tax guy and find
out how
much a donation
> deduction means on the bottom line (unless
someone
here knows this). It'd
> be nice to have a baseline figure so that you
could
just offer the
> equivalent cash to anyone wanting to donate
something but is considering
> the tax break. Cash is immediate and
under-the-table :)
Well, with a few caveats, it should be your marginal
tax rate (your
'bracket') times the valuation of the
donation. For
example, your $1000
donation should bring you a $280 tax deduction if you
are in the 28%
bracket.
- don
37.3% if you are also in CA in the 9.3% state bracket
(and it doesn't take much to get there).
Highest possible tax benefit would seem to be a (rich)
person living in CA in the 39.6% federal and 9.3% state
brackets - $489 returned for every $1000 donated.