7 ms·

501(c)3 non-profits are tax deductible. I'd recommend http://machineproject.com/ http://machineproject.com/ for the HN crowd Also funding for workshops/educat

by uhwhat 11y ago

501(c)3 non-profits are tax deductible. I'd recommend http://machineproject.com/ http://machineproject.com/ for the HN crowd Also funding for workshops/education through makerspace type groups. Also funding for clean water infrastructure in 3rd world regions.

xur17 11y ago
I've been struggling with this a little bit - my income / spending currently results in me taking the standard deductible, so I'm not able to take advantage of this tax deduction. Therefore, it makes the most sense for me to hold off on donating, and save the money until I'm not taking the standard deduction, and then donate it all at once. I've been shuffling money off into a separate savings account every month to get into the habit, and then I plan to use the balance of this account once I am in a situation where I am able to take advantage of this tax deduction. I do still donate money out of this account, just not a substantial account. edit: I went back and read the article now :) - this chart [0] was helpful. If you're at the beginning of your career, this makes the argument for holding off on significant donation even stronger. [0] https://3d4k2r1b9zry49ki142owdm5-wpengine.netdna-ssl.com/wp-content/uploads/2015/06/Now-vs-Later-flowchart4.png https://3d4k2r1b9zry49ki142owdm5-wpengine.netdna-ssl.com/wp-...
- cdcarter 11y ago
  I do a similar thing, but I have a fairly aggressive portfolio on Betterment that I store my eventual philanthropy in. I fund it out of my credit card's cash back, and unexpected extra income. It's very frustrating to not be able to take advantage of tax deductible gifts seemingly just because I don't own a home!
  - xur17 11y ago
    If you donate the investment directly to a non-profit, you will be able to deduct the full value of the investment, and won't have to pay capital gains on it. Keeping the money in an investment account is a fairly good idea - I should have enough by the end of the year to make this worthwhile.
- reagency 11y ago
  If you aren't giving enough to overpower the standard deduction, perhaps you aren't giving enough.
  - xur17 11y ago
    Regardless of how much someone is giving, they are still missing out on the tax deduction for the first $6300 (or $12.6k if filing jointly) of income.

by uhwhat 11y ago

xur17 11y ago

I've been struggling with this a little bit - my income / spending currently results in me taking the standard deductible, so I'm not able to take advantage of this tax deduction. Therefore, it makes the most sense for me to hold off on donating, and save the money until I'm not taking the standard deduction, and then donate it all at once. I've been shuffling money off into a separate savings account every month to get into the habit, and then I plan to use the balance of this account once I am in a situation where I am able to take advantage of this tax deduction. I do still donate money out of this account, just not a substantial account. edit: I went back and read the article now :) - this chart [0] was helpful. If you're at the beginning of your career, this makes the argument for holding off on significant donation even stronger. [0] https://3d4k2r1b9zry49ki142owdm5-wpengine.netdna-ssl.com/wp-content/uploads/2015/06/Now-vs-Later-flowchart4.png https://3d4k2r1b9zry49ki142owdm5-wpengine.netdna-ssl.com/wp-...

cdcarter 11y ago
I do a similar thing, but I have a fairly aggressive portfolio on Betterment that I store my eventual philanthropy in. I fund it out of my credit card's cash back, and unexpected extra income. It's very frustrating to not be able to take advantage of tax deductible gifts seemingly just because I don't own a home!
- xur17 11y ago
  If you donate the investment directly to a non-profit, you will be able to deduct the full value of the investment, and won't have to pay capital gains on it. Keeping the money in an investment account is a fairly good idea - I should have enough by the end of the year to make this worthwhile.
reagency 11y ago
If you aren't giving enough to overpower the standard deduction, perhaps you aren't giving enough.
- xur17 11y ago
  Regardless of how much someone is giving, they are still missing out on the tax deduction for the first $6300 (or $12.6k if filing jointly) of income.