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Kapernick and Nike Deal......

Discussion in 'The Dungeon' started by ClemsonsR6, Sep 4, 2018.

  1. StaccatoFan

    StaccatoFan My 13 year old is faster than your President

    I just explained it to you.

    It’s about spending to avoid or reduce your overall tax burden.

    It’s why Bernie Sanders loves to call out Amazon as evil for paying zero taxes. Amazon has an expansion plan. So they carefully and masterfully utilize the tax code as a guideline for how they expand. If they can write it off as a business expense. Then it’s approved and that expansion project moves forward.

    Same as Americans and mortgage interest. Everyone thinks buying a home is a great thing because they can write off the interest and reduce their overall taxable income.

    So Kap makes $20million this year. He’s supposed to pay $5million of that in taxes. He has $15m left. But if he donates $2 million, that lowers his tax bracket and he only pays $2million in taxes. So he has $16million to keep because the donations made it look on paper like he’s only taxed on $18million.

    That’s a simplified scenario. But that’s the accounting behind it all in a nutshell.
     
  2. G 97

    G 97 Garth

    I don’t see how ever donating money to charities will ever save you a greater amount of money by being able to deduct it. It doesn’t. The only tax deductions that benefit are from qualifying assets that then can be depreciated and certain goods and services. But these are few and far between. You use to be able to deduct athletic donations to Universities and in return you would get ticket advantages and various other perks from the University. But no longer.

    no way you come out ahead donating $1,000 (or $X ) then deducting it off your taxes. So if your effective tax rate is 15% you save $150 in taxes but it cost you $1,000. If you don’t get any benefit or asset in return above feel good, you’re effectively out $850. You’re not going to move into a different tax bracket or schedule to offset the cost of doing so.
     
    Last edited: Feb 13, 2020
  3. G 97

    G 97 Garth

    I don’t think this is possible. The amount you have to donate in order to obtain a lower tax bracke t would far outweigh the tax benefit. I don’t think the tax schedules allow this to occur, they’re not this loose.


    With regards to mortgages interest expense being deductible, this is true. You get a benefit of a reduced tax burden but the overall interest expense you incur far outweighs the resulting tax savings. It’s not even close. I just correlate it back to establish my effective interest rate I’m paying to compare rates of return with other investments I have. The reality it isn’t as big as a tax saving as people think it is. The greater benefit is it can get you above the standard deduction and qualifies you to itemize deductions
     
    Last edited: Feb 13, 2020
  4. StaccatoFan

    StaccatoFan My 13 year old is faster than your President

    It was a loose example GMan. I am not familiar with the exact numbers game. I only understand the basic principal. I get my taxes done free by my Bro. I leave it to his expertise.

    He’s up in Derns neck of the woods. By Lake Itasca.
     
  5. G 97

    G 97 Garth

    Well, take him out for a beer and have him run through it with you in greater detail. I’m sorry your brother has to live up by Dern, give him my condolences. :D
    Although that is a beautiful area.
     
  6. pickled egg

    pickled egg Tell me more

    Shut up, Beavis :moon:
     
    G 97 likes this.
  7. G 97

    G 97 Garth

    Speaking of beer. Guinness time.:beer:

    7DF709E0-696E-4D2D-8ED6-168E912D46AA.jpeg
     
  8. StaccatoFan

    StaccatoFan My 13 year old is faster than your President

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  9. StaccatoFan

    StaccatoFan My 13 year old is faster than your President

  10. Yzasserina

    Yzasserina sound it out

    I don't know what question you asked your brother, only see his answer. What G97 said is correct. You can reduce your taxes through charitable giving, but you also reduce your wealth, because it is not a dollar for dollar exchange. This for personal taxes, making cash donations. Corporations are different, as are donations of appreciated property, other non-cash assets.
     
    cav115 likes this.
  11. G 97

    G 97 Garth

    Up to 50% of the amount he is donating. Not 50% of his regular income. Then limited to 30% of taxable income. So the math says, although he is reducing his tax burden he’s not making money by donating then deducting the donation. And when typically bonuses fall into 35%-40% tax it would make sense to try and use/move these otherwise tax expense monies to set something up in your name for good will etc. But the resulting deductions benefits will still not outweigh the cost of setting up the charity etc. he’s basically repurposing his tax burden into his own name sake charity.
     
  12. StaccatoFan

    StaccatoFan My 13 year old is faster than your President

    Well wouldn’t you do the same rather than give it to the gubment?
     
    G 97 likes this.
  13. G 97

    G 97 Garth

    Yep, exactly.
     
  14. Buckwild

    Buckwild Radical

    Dude. Who the fuck in the paddock is going to give me grief if I take a knee for the anthem? Seriously.
     
  15. Buckwild

    Buckwild Radical

    Let’s grasp at anything to make it seem like a nefarious act. Salllllllty tears
     
  16. Buckwild

    Buckwild Radical

  17. Robby-Bobby

    Robby-Bobby Steeltoe’s Daddy

    Think how much he’d be getting paid if he weren’t a racist piece of shit as a person!
     
  18. Buckwild

    Buckwild Radical

    I had a damn good salty meme, but damn this phone
     
  19. StaccatoFan

    StaccatoFan My 13 year old is faster than your President

    I just asked him if charitable donations were still deductible....his first answer was him thinking I was asking like for myself for this April's return. So I had to clarify I was
    asking about someone rich, like Kap and that it was just part of a discussion and I wanted a more accurate answer because I didn't now for sure.

    The point is....Rich people have lawyers and accountants looking out for their financial interests. Philanthropy looks good on the surface...but there's an underlying benefit to them.
    I'm not saying that's a bad thing, I'm not going to just think someone like Kap is out to help others..because he's not. He showed that by trying to paint himself as a martyr and a "sacrificing everything" for his cause, yet behind the scenes he's collecting millions from Nike, and Nike is just biding their time until they release their ad campaign starring him and selling his overpriced shoes to show you stand with him and his "cause".

    Comparing that POS to Ali is truly an insult to Ali and his memory. Jackie Robinson sacrificed, Hank Aaron sacrificed.

    Kap's a spoiled brat.
     
  20. Yzasserina

    Yzasserina sound it out

    I understand your views on Kaepernick, you have been very clear. What was less clear was your grasp on how the personal income tax laws work regarding the impact charitable giving has on a person's wealth, as illustrated in your rough example wherein a person's wealth was increased by virtue of having made charitable contributions. Not possible, factually incorrect. Not necessary and counterproductive in supporting your opinion on the motives behind the charitable giving of others. Do they do it because they would like to support a worthwhile cause, it makes them feel good, they wish to garner influence, gain admiration, feed their egos, etc. Who knows. Putting aside that some of the foregoing may be monetized at some point in the future, what they don't do is end up with more dollars than they started out with.
     
    mpusch likes this.

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