19 year old SAWG donates over 1million dollars in scholarships and business grants from onlyfans checks

[Turbulent]

I might not be the sharpest knife in the drawer but i never understood the tax write off thing.

I mean say for example you give 1M to charity so you get to save some money off your taxes. I doubt the money you save exceeds 1M. So how are you better off financially than if you hadn't given the 1M?

 

[Kurt off them percs]

Da fukk is a SAWG

 

[Fillerguy]

I might not be the sharpest knife in the drawer but i never understood the tax write off thing.

I mean say for example you give 1M to charity so you get to save some money off your taxes. I doubt the money you save exceeds 1M. So how are you better off financially than if you hadn't given the 1M?

You sound poor.


A write off can lead to an overal deduction in your taxes, depending on tax rate. Higher tax rate = greater savings. Lets say the rate is 45%, of that million, 450k is saved. This is a very rough example however. And if you have mildy skilled tax and financial advisors, your money makes money, you can write off many other expenses and will offset any tax losses. One of the many ways the rich stay rich.

 

[Turbulent]

You sound poor.


A write off can lead to an overal deduction in your taxes, depending on tax rate. Higher tax rate = greater savings. Lets say the rate is 45%, of that million, 450k is saved. This is a very rough example however. And if you have mildy skilled tax and financial advisors, your money makes money, you can write off many other expenses and will offset any tax losses. One of the many ways the rich stay rich.

Admittedly I don't make millions. But could you give an example where someone gives 1M and ends up with more money than if they hadn't given 1M?

 

[Fillerguy]

Admittedly I don't make millions. But could you give an example where someone gives 1M and ends up with more money than if they hadn't given 1M?

You really are broke

Spoiler

I'm joking

Its not about making money, its about spending less to less than tax liability. You typically donate a small amount to charity...like 5%. A million income, will get hit less tax wise if its spent on charity rather than on goods/services. It doesn't start mattering until you hit a certain bracket.

 

[MasterOfAllHeSurveyz]

Damn you a hater, lol

Super hater.

Charitable donations (cash-based) don't reduce you tax burden like people think. A one mil donation, in cash, is only going to shave about 1/3 of a mil of your tax burden. The money is still gone. Bunching (multiple years of CHs) is only going to contribute about 5K more a year in subsequent years.

For example:

You make $8 mil and donate $1 mil. Your FED taxes are going to be about a little under $3 mil. Due to your cash charitable donation, you'll owe Uncle Sam $2.6 mil instead of the little under $3 mil. You gave away a mil to save paying 3XXk less in taxes.

 

[CopiousX]

ColiAccountants in here trying to explain the financial lives of millionaires with an army of actual accounts is hilarious to me

 

[Turbulent]

Super hater.

Charitable donations (cash-based) don't reduce you tax burden like people think. A one mil donation, in cash, is only going to shave about 1/3 of a mil of your tax burden. The money is still gone. Bunching (multiple years of CHs) is only going to contribute about 5K more a year in subsequent years.

For example:

You make $8 mil and donate $1 mil. Your FED taxes are going to be about a little under $3 mil. Due to your cash charitable donation, you'll owe Uncle Sam $2.6 mil instead of the little under $3 mil. You gave away a mil to save paying 3XXk less in taxes.

Thank you, that's what i was trying to say but couldn't phrase it right. It's still a net loss cash wise. You didn't really save 300k if you had to pay 1M to save it. That's why I don't understand the "it's a tax write off" sentiment. You'd be better off cash wise if you kept the million and paid the 300k tax.

 

[MasterOfAllHeSurveyz]

Thank you, that's what i was trying to say but couldn't phrase it right. It's still a net loss cash wise. You didn't really save 300k if you had to pay 1M to save it. That's why I don't understand the "it's a tax write off" sentiment. You'd be better off cash wise if you kept the million and paid the 300k tax.

That's why I don't listen to 99% of people on the internet who claim they know. Talk like "it's a tax write-off" is what let me know they never touched legit, real money.

=====

If you're trying to really reduce your tax burden, charitable donations aren't it. Depreciation is where it's at. That's how all these big corps pay zero or get rebates in taxes. They own so much real estate; they can write off 100% of their tax burden with the depreciation bucket for decades. It's been a "secret" in the real estate investing realm forever.

The power of depreciation (queued):


This is probably my third or fourth time I've posted this segment on here.

 

[Turbulent]

You really are broke

Spoiler

I'm joking

Its not about making money, its about spending less to less than tax liability. You typically donate a small amount to charity...like 5%. A million income, will get hit less tax wise if its spent on charity rather than on goods/services. It doesn't start mattering until you hit a certain bracket.

I understand that the donation reduces your tax liability. My point is that the fact you get a deduction for it doesn't make it less noble because at the end, your donation will always be a net loss money wise compared to the scenario where you don't give the money. If we take the example you gave earlier today, at 45%, you give 1M and save 450k on your taxes. You're still out 550k. Compare that to keeping that 1M and paying the extra 450k. Between the two scenario is a difference of 100k. It's not her fault it's a tax write off. Are people saying she shouldn't claim the deduction? Or that she should have donated more? Whatever amount she gives, people will still say it's a tax write off. I just don't understand the purpose of pointing it out.

My point is, whatever tax bracket you hit, you will still end up with a net loss if you donate vs. if you don't. Unless im missing something. But still i appreciate you taking the time to try to break it down. Honestly I'm not trying to be a smart ass, i just genuinely don't get the point of pointing out the tax write off to discredit the gesture (not saying you specifically)

 

[beenz]

ain't no one falling for this jewish chick in blackface

 

[beenz]

That's why I don't listen to 99% of people on the internet who claim they know. Talk like "it's a tax write-off" is what let me know they never touched legit, real money.

=====

If you're trying to really reduce your tax burden, charitable donations aren't it. Depreciation is where it's at. That's how all these big corps pay zero or get rebates in taxes. They own so much real estate; they can write off 100% of their tax burden with the depreciation bucket for decades. It's been a "secret" in the real estate investing realm forever.

The power of depreciation (queued):


This is probably my third or fourth time I've posted this segment on here.

u can also do this by maxing out your 401K pretax contributions if u work for a job that offers this.

 

[SheWantTheD]

simps changed her life big time.

50 mil in a year and she ain't even get fully naked? crazy..

 

[Xcenai]

simps changed her life big time.

50 mil in a year and she ain't even get fully naked? crazy..

yeah ... wish she was my gf

 

[Oatmeal]

Admittedly I don't make millions. But could you give an example where someone gives 1M and ends up with more money than if they hadn't given 1M?

Spoiler

Basically you make it look like you earn less with write off, people will donate just enough to get them under the threshold of being taxed at a lower rate. Like if you are taxed at 15% at 500k but taxed at 27% above 550k