• 0 Posts
  • 60 Comments
Joined 1 year ago
cake
Cake day: July 1st, 2023

help-circle















  • Site the more correct wording would be “neither the customer nor the company are taxed on the donation”. Assuming the customer itemizes their taxes, which a you’ve pointed out is rare.

    I’m trying to speak at the level of people who post stuff like the OP. Some of the details don’t shake out correctly but I’m not trying to get in the weeds of US tax code here if the main point holds up.



  • Ah, this again.

    The mega corporation did not receive any tax benefit from collecting donations. They are able to write off the amount of donations from their income, so that they aren’t paying tax on the money they collected specifically to be donated.

    1. Company collects $1 donation from customer
    2. Company has $1 extra income
    3. Company donates $1 to charity
    4. Company writes that dollar off of their income.
    5. Company reports the exact same profit/loss as if they had not collected donations.