Comments on: Donate to Charity = Lower Tax Bill and Help Your Favourite Cause http://www.bhatt.id.au/blog/donations-to-charity-lower-tax-bill-and-help-your-favourite-cause/ Technology Reviews, Movies and TV Shows, Personal Finance, Politics, Environment, Books... Tue, 07 Feb 2012 06:08:55 +0000 hourly 1 http://wordpress.org/?v=3.0.5 By: Drew http://www.bhatt.id.au/blog/donations-to-charity-lower-tax-bill-and-help-your-favourite-cause/#comment-32618 Drew Sun, 19 Jun 2011 06:54:07 +0000 http://www.bhatt.id.au/blog/donations-to-charity-lower-tax-bill-and-help-your-favourite-cause/#comment-32618 I am in the same situation, but I'm confused by Ash's comment...http://www.ato.gov.au/nonprofit/content.aspx?menuid=0&doc=/content/34496.htm&page=4&H4 The example on this page towards the bottom suggests that the gift is fully claimable? as per the ato site.... "Example: Dominic's assessable income in his tax return for 2006-07 is $15,000. He has donated $20,000 to a DGR during that year. He has no other income or deductions in his tax return. The tax deduction he can claim for his gift is limited to $15,000. This is because a deductible gift cannot add to or create a tax loss. Dominic's taxable income therefore becomes nil and the excess $5,000 from his gift cannot be carried forward to a later tax return as a tax loss" I am in the same situation, but I’m confused by Ash’s comment…http://www.ato.gov.au/nonprofit/content.aspx?menuid=0&doc=/content/34496.htm&page=4&H4 The example on this page towards the bottom suggests that the gift is fully claimable? as per the ato site….

“Example: Dominic’s assessable income in his tax return for 2006-07 is $15,000. He has donated $20,000 to a DGR during that year. He has no other income or deductions in his tax return.

The tax deduction he can claim for his gift is limited to $15,000. This is because a deductible gift cannot add to or create a tax loss.

Dominic’s taxable income therefore becomes nil and the excess $5,000 from his gift cannot be carried forward to a later tax return as a tax loss”

]]> By: Brenton http://www.bhatt.id.au/blog/donations-to-charity-lower-tax-bill-and-help-your-favourite-cause/#comment-32614 Brenton Sun, 19 Jun 2011 04:30:42 +0000 http://www.bhatt.id.au/blog/donations-to-charity-lower-tax-bill-and-help-your-favourite-cause/#comment-32614 I am in a situation where if I dont donate, I will have to pay extra tax to Canberra. So rather than my extra taxes being used for purposes by politicians whom I dont trust, I love donating to a wide range of wildlife and social justice charities. Taxpayers have so little that they can claim back these days, so that tax-deductible donations are a great way to help others and at the same time, oneself!lol I am in a situation where if I dont donate, I will have to pay extra tax to Canberra. So rather than my extra taxes being used for purposes by politicians whom I dont trust, I love donating to a wide range of wildlife and social justice charities. Taxpayers have so little that they can claim back these days, so that tax-deductible donations are a great way to help others and at the same time, oneself!lol

]]> By: Ash http://www.bhatt.id.au/blog/donations-to-charity-lower-tax-bill-and-help-your-favourite-cause/#comment-32564 Ash Wed, 15 Jun 2011 07:42:09 +0000 http://www.bhatt.id.au/blog/donations-to-charity-lower-tax-bill-and-help-your-favourite-cause/#comment-32564 Sadly, it's untrue that every dollar you give you get back. I wish that was the case. But in Australia when you give say a $50 donation you claim it in your tax return so the real cost to you after tax is... If you are in the 30% tax bracket it costs you $35 after tax If you are in the 37% tax bracket it costs you $31.50 after tax If you are in the 45% tax bracket it costs you $27.50 after tax <blockquote>EDITOR: advertising links and promotion for Ash's business were removed from this comment</blockquote> Sadly, it’s untrue that every dollar you give you get back. I wish that was the case. But in Australia when you give say a $50 donation you claim it in your tax return so the real cost to you after tax is…

If you are in the 30% tax bracket it costs you $35 after tax
If you are in the 37% tax bracket it costs you $31.50 after tax
If you are in the 45% tax bracket it costs you $27.50 after tax

EDITOR: advertising links and promotion for Ash’s business were removed from this comment

]]> By: Drew http://www.bhatt.id.au/blog/donations-to-charity-lower-tax-bill-and-help-your-favourite-cause/#comment-32158 Drew Thu, 19 May 2011 07:43:55 +0000 http://www.bhatt.id.au/blog/donations-to-charity-lower-tax-bill-and-help-your-favourite-cause/#comment-32158 Every dollar you give can be claimed back as a donation when you put your return in. You will get back every dollar that you give. If you have paid enough income tax you will get a refund including the amount of donation money you have given. So give your refund to charity!!! If you have not paid enough, the donation deductions go towards the outstanding debt to the government. This is why the rich and famous do it, they don't have employee's paying as they earn. I donate 20% of my income regardless, but alas I'm not rich and famous! Every dollar you give can be claimed back as a donation when you put your return in. You will get back every dollar that you give. If you have paid enough income tax you will get a refund including the amount of donation money you have given. So give your refund to charity!!! If you have not paid enough, the donation deductions go towards the outstanding debt to the government. This is why the rich and famous do it, they don’t have employee’s paying as they earn. I donate 20% of my income regardless, but alas I’m not rich and famous!

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