clients & charitable contributions


G

Gary Goodman

What do you think of this? A client's income for 2003 and
2003 totaled more than $30,000,000. Charitable gifts for
those two years: $0.

Gary
 
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J

John H. Fisher

What do you think of this? A client's income for 2003 and
2003 totaled more than $30,000,000. Charitable gifts for
those two years: $0.
I think that's just great!!!:) Multiple personalities??? I
don't know what the split would be, between them, but
perhaps they aren't compassionate conservatives and believe
only in the survival of the fittest!!!=:)

"Jack" - John H. Fisher - (e-mail address removed)
Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ
My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html

Where Ignorance is bliss, 'tis folly to be wise!=:)
 
H

Helen P. OPlanick EA

What do you think of this? A client's income for 2003 and
2003 totaled more than $30,000,000. Charitable gifts for
those two years: $0.
Two things, either he does not give or he does not tell. We
have a cleint who gives extremely large amounts to charity
(and uses his plane for life-flights etc) and refuses to
deduct it. And he is not my only one.

Helen, EA in PA
Director, NAEA; Immediate Past President, PSEA; Tax Expert, AOL
Enrolled Agents - THE Tax Professionals
 
P

Phil Marti

Gary Goodman said:
What do you think of this? A client's income for 2003 and
2003 totaled more than $30,000,000. Charitable gifts for
those two years: $0.
I'm not at all surprised. Some years ago I saw a chart
relating charitable giving to either occupation or education
level. What I recall is that business powerhouses were near
the bottom (in real dollars, not percentages).

Phil Marti
Clarksburg, MD
 
M

MTW

Gary said:
What do you think of this? A client's income for 2003 and
2003 totaled more than $30,000,000. Charitable gifts for
those two years: $0.
Doesn't rub me the wrong way. I've noticed that higher
income clients often make relatively lower charitable
contributions. This is especially so if the high income was
earned exclusively by the client, rather than via inherited
wealth.

But, the thing to keep in mind is that the client is likely
paying a BOATLOAD of income taxes, and those go to support
all kinds of "good works" (and "bad").

MTW
 
D

David Woods, EA, ChFC, CLU

Gary Goodman said:
What do you think of this? A client's income for 2003 and
2003 totaled more than $30,000,000. Charitable gifts for
those two years: $0.
I don't pass judgement on whether clients make or don't make
charitable contributions. Such a decision is inherently
personal and I see nothing wrong with keeping all one's
wealth or donating it all.
 
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L

Lynn Guini

Gary Goodman said:
What do you think of this? A client's income for 2003 and
2003 totaled more than $30,000,000. Charitable gifts for
those two years: $0.
How much did he pay in state and federal income tax? How
much did you pay in state and federal income tax? The
difference is charity.
 
H

Harlan Lunsford

Gary said:
What do you think of this? A client's income for 2003 and
2003 totaled more than $30,000,000. Charitable gifts for
those two years: $0.
I see nothing at all strange in that scenario.
Mine total zero also.

ChEAr$,
Harlan Lunsford, EA n LA
 
T

Tom Healy

What do you think of this? A client's income for 2003 and
2003 totaled more than $30,000,000. Charitable gifts for
those two years: $0.
I would guess that the client doesn't have a charitable
inclination, or likes paying income tax. Of course the first
$900,000 of charitable contribution wouldn't give a tax
benefit. Maybe that put him off.

--
Thomas E Healy, CPA, PC
1650 38th St., Ste 202W
Boulder, CO 80301
Please send email to: (e-mail address removed), since I block all email at my
newsgroup address.
phone (303) 443-1804
fax (720) 489-3772
 
F

Frederick Jorden

Gary said:
What do you think of this? A client's income for 2003 and
2003 totaled more than $30,000,000. Charitable gifts for
those two years: $0.
It is his money and none of my business.
 
S

Stuart Bronstein

Gary said:
What do you think of this? A client's income for 2003 and
2003 totaled more than $30,000,000. Charitable gifts for
those two years: $0.
Charity begins at home. Or maybe he just didn't bother to
keep track of his charitable contributions. Of perhaps he
figured that he's paying enough taxes that he's helped
enough people out already.

I've been a volunteer and contributor to charitable causes
since I was 12 years old. I think it's the right thing to
do. But I also think it's up to the individual.

Stu
 
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J

JanZtax

What do you think of this? A client's income for 2003 and
2003 totaled more than $30,000,000. Charitable gifts for
those two years: $0.
I'm with you, Gary -- I would notice that very thing if he
were my client. But, we've been down this road before in
this newsgroup and I know that I'm in the minority in
believing that everyone should be making charitable
contributions of cash or time. And, as I've mentioned before
here, I offer a discount on my bill to my clients who donate
3% or more of their income or time, and I charge a $50
penalty for those who have made no donations in the previous
year (which I then donate to my favorite charities).

I do understand, however, that many don't think this is
relevant to the tax professional's job; for me it's putting
my beliefs in action in my day-to-day life and
encouraging/educating my clients to do the same.

By the way, I'm guessing your client is part of a
corporation, true? Did the donations perhaps get made via
the corporation?

Jan Zobel EA
 
H

Harlan Lunsford

I'm not at all surprised. Some years ago I saw a chart
relating charitable giving to either occupation or education
level. What I recall is that business powerhouses were near
the bottom (in real dollars, not percentages).
Thanks Phil. That makes me feel better about what I already
posted.

ChEAr$,
Harlan Lunsford
Mon, 8 Nov 2004 20:22:28
 
H

Harlan Lunsford

How much did he pay in state and federal income tax? How
much did you pay in state and federal income tax? The
difference is charity.
I LIKE the way you think, Lynn.

ChEAr$,
Harlan Lunsford, EA n LA
Mon, 8 Nov 2004 20:24:28
 
H

Harlan Lunsford

JanZtax said:
I'm with you, Gary -- I would notice that very thing if he
were my client. But, we've been down this road before in
this newsgroup and I know that I'm in the minority in
believing that everyone should be making charitable
contributions of cash or time. And, as I've mentioned before
here, I offer a discount on my bill to my clients who donate
3% or more of their income or time, and I charge a $50
penalty for those who have made no donations in the previous
year (which I then donate to my favorite charities).

I do understand, however, that many don't think this is
relevant to the tax professional's job; for me it's putting
my beliefs in action in my day-to-day life and
encouraging/educating my clients to do the same.
One question, Jan. Do you actually tell your non
contributory clients about the 50$ penalty? And what do
they say about it? Have you noticed any of them "voting
with their feet"?

While I have in the past discounted a fee to one really
needy, or even done a return free to an army
reservest/national guardsman called to active duty, I
could never discriminate on what many will call a
moral/ethical basis.

Well.... exception of course proves the rule, cause I DO
discriminate against liars and cheaters and evaders.

ChEAr$,
Harlan Lunsford, EA n LA
Tue, 9 Nov 2004 17:51:00
 
M

MTW

Tom said:
Of course the first $900,000 of charitable contribution
wouldn't give a tax benefit.
I've been trying to replicate that result, but haven't
succeeded. How did you do that and/or what assumptions did
you make?

MTW
 
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T

Tom Healy

What do you think of this? A client's income for 2003 and
2003 totaled more than $30,000,000. Charitable gifts for
those two years: $0.
The sad thing about this is that at this income level
charitable planning can actually result in more funds going
to loved ones than in the absence of planning - at least
except for 2010. A good book on the subject is Bill Gates
Sr's book, "Wealth and Our Commonwealth." Yes, THAT Bill
Gates.

--
Thomas E Healy, CPA, PC
1650 38th St., Ste 202W
Boulder, CO 80301
Please send email to: (e-mail address removed), since I block all email at my
newsgroup address.
phone (303) 443-1804
fax (720) 489-3772
 
G

Gary Goodman

What do you think of this? A client's income for 2003 and
I'm with you, Gary -- I would notice that very thing if he
were my client. But, we've been down this road before in
this newsgroup and I know that I'm in the minority in
believing that everyone should be making charitable
contributions of cash or time. And, as I've mentioned before
here, I offer a discount on my bill to my clients who donate
3% or more of their income or time, and I charge a $50
penalty for those who have made no donations in the previous
year (which I then donate to my favorite charities).

I do understand, however, that many don't think this is
relevant to the tax professional's job; for me it's putting
my beliefs in action in my day-to-day life and
encouraging/educating my clients to do the same.

By the way, I'm guessing your client is part of a
corporation, true? Did the donations perhaps get made via
the corporation?
He is 50% owner of an S-Corp, which didn't make any
contributions. He did set up a private foundation a few
years ago, but hasn't contributed any money in several
years. We double checked on the charity and were told "no
contributions" for 2003, so it isn't that he forgot.

I must be in the minority as well, because I believe that we
should provide strong hints to clients about charity. As to
the difference between his taxes and mine being charity,
that's a load of male bovine waste. By that logic, I should
consider the increase in my taxes from year to year as being
charity.

Living in a high-cost area (metropolitan New York City), I
can understand how a client making $250,000 can feel
financially squeezed to raise a couple of kids, but when the
income goes above $1,000,000 and the client is that cheap,
that's another story. Sometimes there is an underlying
problem, such as the addiction to acquiring real estate, but
this client's income is more than the combined value of all
of his homes.

I took the Becker CPA review course 15 years ago and still
remember his lecture on a CPA's responsibility to the world
(vis a vis charitable giving).

Gary
 
F

Frederick Jorden

Harlan said:
JanZtax wrote:
One question, Jan. Do you actually tell your non
contributory clients about the 50$ penalty? And what do
they say about it? Have you noticed any of them "voting
with their feet"?

While I have in the past discounted a fee to one really
needy, or even done a return free to an army
reservest/national guardsman called to active duty, I
could never discriminate on what many will call a
moral/ethical basis.

Well.... exception of course proves the rule, cause I DO
discriminate against liars and cheaters and evaders.
And others contribute time and other services which they
cannot deduct. The folks who work on building houses for the
poor. Others who work in disaster relief for the Red Cross
and the Salvation Army. The person who picks up the lunch
tab for the Military person at the airport. None of these
are deductible. You may never know they do it. In fact I
kind of remember a passage in the bible about folks who call
attention to how good they are.

By the way I noted that Target stores no longer will allow
Salvation Army bell ringers in front of their stores.
 
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T

Tom Healy

Of course the first $900,000 of charitable contribution
Roughly, 3% disallowance of itemized deductions times
$30,000,000 AGI.

Tom

--
Thomas E Healy, CPA, PC
1650 38th St., Ste 202W
Boulder, CO 80301
Please send email to: (e-mail address removed), since I block all email at my
newsgroup address.
phone (303) 443-1804
fax (720) 489-3772
 

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