Us vs. Museums

From: Wayne M. Smith <wmsmith_at_earthlink.net>
Date: Mon Mar 5 01:48:10 2001

> > 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.
Received on Mon Mar 05 2001 - 01:48:10 GMT