Basically, the amount you 'donate' to charity can be deducted from your declared income, there fore not paying taxes on that amount, either cash or the value of a 'thing'. In the old days of many layers of taxation it could be favorable to donate enough to get your income into the next lower tax bracket and pay a lower percentage on the remaining income, say 25% instead of 33%. I remember reading that the Clintons used to list donations charities, one of the items was Bills old underwear, and listing the retail value of new.
Basically, the amount you 'donate' to charity can be deducted from your declared income, there fore not paying taxes on that amount, either cash or the value of a 'thing'. In the old days of many layers of taxation it could be favorable to donate enough to get your income into the next lower tax bracket and pay a lower percentage on the remaining income, say 25% instead of 33%. I remember reading that the Clintons used to list donations charities, one of the items was Bills old underwear, and listing the retail value of new.
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