Taxes - Charitable Gifts I am referring to Reading #16 and the formula to compute the FV of “donation” to charity FV = (1+rg)^n + Toi [1+re(1-tie))]^n(1-Te) I see the 1st term – (1+rg)^n –- Free gift However the second part is not clear to me: I see the calculation on a “taxed” donation that earns todays re and pay income tax of tie BUT i) Is not double counting?, ii) Why is it multiplied by Toi – Tax rate on ordinary income Many thanks for your help PS – do not hesitate to forward ideas to firstname.lastname@example.org
U receive a tax deduction for donating and u invest it urself then later donate.
(1+rg)^n: return to the charity if not UBI. Toi [1+re(1-tie))]^n(1-Te): return to the donor. Think that the donor invest the tax deduction$ Toi for n years. Like this toy, re-tie, tea stuff…
thanks to both Regards,