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I do know that a donation is deductible but how is this used in money laundering? Are we talking cash donations only? Wouldn't the IRS be interested in how you came across the amount you donated when you file for the deduction?

I do know that a donation is deductible but how is this used in money laundering? Are we talking cash donations only? Wouldn't the IRS be interested in how you came across the amount you donated when you file for the deduction?

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[–] [deleted] 2 pts (edited )
  1. Buy a 'work of art' like a painting or sculpture for $100.
  2. Have it evaluated by an 'art critic' for $100K
  3. Donate it
  4. Subtract $100K off of your tax bill
  5. Repeat until you owe nothing

You can also do this with other things besides art, like overvalued land, houses, cars, etc, etc.