Any way to get tax write-off for putting investment proceeds to charity? (options trading, fund)
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Before we get to the story - if I were to donate my proceeds to charity, how do I write it off so that I don't pay that 30% tax back to the government, becoz I'm not going to personally use the proceeds? Thoughts?
I don't want to attract smartass responses. If you aren't religious, are a better trader than poor me, I'd appreciate the absence of snide remarks
I never go to church late in the eve, but today I did. Generally, I finish it off first thing in the am or by noon, at best. Today I had to attend a European brunch with friends in Northern CT. So I went to a church nearby, I saw this woman holding a board. No way she looked homeless, she was well dressed, she was so ashamed of it she bowed and hid her face behind her little white card.
I was shell shocked. I usually see the highway ramp folks - drug addicts, drunks, dirty people, but this is one of a kind. I don't carry cash at all. My brunch three course meal cost was like 85 bucks with all these uppity folks. Never felt that form of guilt in my life of putting that kind of money away when so many others are helpless and struggling, and not even eating much, fearing a disruption of my recent strenuous diet routine. I ate fruits
Depressed and unable to help, I went to the back of the church and I found a man and a little boy with a similar board. I didn't figure out they were family. I drove away, but then two signals past, I turned around and drove back and found them. I asked them if they would let me buy them grocery supplies. So we all went to Stop and Shop. I got to know their miserable story - usual plot - layoff, foreclosure, health costs, debts and top it off, the boy has medical problems.
I have never had this kind of urge. But I want to open a new trading account, somehow have a roadmap to collect 10K into it by Janurary, begin daytrading and give the proceeds to charity. I've been having immense success with options trading the last 2 months, though naked equity buying has somewhat been lacklustre. I'm easily picking up 300 to 500 bucks here and there, and I could use that money to help people. But I don't want to be taxed for it.
Bless you. We will be seeing much more of these sad situations next year as formerly self-supporting, middle class families continue to fall off the unemployment rolls and the states cut back on Medicaid.
You could establish the Antlered Chamatka Charitable Foundation and donate securities with a stepped-up basis and/or money (the 10k you mentioned) to that. You would also, of course, have a separate foundation trading account. Part of your seed money should be tax deductible if your foundation is properly set up.
Good for the soul AC. Most churches accept stocks for contributions. There should be someone you can contact in the 'giving' department who can guide you.
Your charities are deductible either money or stocks. Get the receipts and claim on tax return, the limit is based on your level income. You could carryover the deduction to years ahead if you hit the limit this year.
Thank you, Ariadne, OD and Nancy. Let me research a bit and come back with questions.
I spoke to some people here. But 80% of the time I ended up arguing why I'm NOT naive and a bleeding heart. I simply can't escape the skepticism against homeless and unemployed people.
I asked them for insight, and ended up getting lectured on why I should not do it, becoz they care about me being manipulated
You can open a Charitable "Trust" Fidelity does one, I think most of the others have them also. You open the trust, you transfer the stock to them, They sell it, you get the tax deduction this year. and then you 'recommend' grants to non/profits, they write the check to them from your 'trust' fund.
You can open a Charitable "Trust" Fidelity does one, I think most of the others have them also. You open the trust, you transfer the stock to them, They sell it, you get the tax deduction this year. and then you 'recommend' grants to non/profits, they write the check to them from your 'trust' fund.
But I'm more interested in personally finding genuine cases and helping them, rather than making it organized, like a trust and somewhat machinate the charity process.
Won't that be like a non-government organizational form of charity which doesn't have much eyes and ears to it?
I think you would need to setup your own non/profit (IRS 503c3) to be able to direct if from you (your non/profit) to a person. If you just 'give' them money that does not go thru some IRS non/profit / Church, It's just a personal gift from you to them (and there is nothing wrong with that I keep a few $25 Grocery store gift card with me to do that) , and that is not Tax deductible.
I spoke to some people here. But 80% of the time I ended up arguing why I'm NOT naive and a bleeding heart. I simply can't escape the skepticism against homeless and unemployed people.
I asked them for insight, and ended up getting lectured on why I should not do it, becoz they care about me being manipulated
There are some who abuse the system, of course. But that doesn't explain why formerly self-supporting middle class families would opt for elimination of their retirement funds, no education for their children, bankruptcy, foreclosure, homelessness, food stamps and poverty - after a lifetime of work.
Our family, too, over the years have given food to people on street corners. It is much worse now. Our entire society in future needs to come together on this, because high unemployment and subsistence wages will be the norm going forward. Thanks to globalization, outsourcing and technology, it is a whole new world in the U.S.
Quote:
Originally Posted by flyonpa
I think you would need to setup your own non/profit (IRS 503c3) to be able to direct if from you (your non/profit) to a person.
Which is why it is best to get professional advice. Doesn't seem to me setting up a charitable foundation wherein the trading profits remain in the foundation and you can personally direct the donations should be prohibitively difficult to do. Start calling some charitable foundations/organizations for leads on attorneys/accountants, etc.
The Antlered Chamataka Charitable Foundation - has a nice ring to it, don't you think?
Last edited by Ariadne22; 09-28-2011 at 03:19 PM..
Which is why it is best to get professional advice. Doesn't seem to me setting up a charitable foundation wherein the trading profits remain in the foundation and you can personally direct the donations should be prohibitively difficult to do. Start calling some charitable foundations/organizations for leads on attorneys/accountants, etc.
Bill/Melinda Gates have found a whole new purpose to their lives with their foundation. Of course, you are not yet a billionaire, but who knows where it could lead - and give you a worthwhile reason to get out of bed every morning.
The Antlered Chamataka Charitable Foundation - has a nice ring to it, don't you think?
Well, it sounds good but also kind of presumptuous. I'm a little guy LOL. Those who do those foundations generally do it with millions of dollars. My net worth at the moment is not even 1/10th of it
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
, but who knows where it could lead - and give you a worthwhile reason to get out of bed every morning.
