Lets be clear: Murphy didn’t sign a tax law

[Barms 98]

He created a law that said a municipality can create a charity.  Then that town if it wishes will apply credit to your property or school taxes if they wish. 

This does not automatically mean the IRS is okay with that charitable deduction.  Ernst and Young is already out saying fat chance Uncle Sam will believe you got no services from said charity. 

File taxes at your own peril.   The purpose of this post is to stop people from spreading fake news “Murphy says I can now deduct my property taxes as charity”

[Zeke 5,504]

24 minutes ago, Barms said:

He created a law that said a municipality can create a charity.  Then that town if it wishes will apply credit to your property or school taxes if they wish. 

This does not automatically mean the IRS is okay with that charitable deduction.  Ernst and Young is already out saying fat chance Uncle Sam will believe you got no services from said charity. 

File taxes at your own peril.   The purpose of this post is to stop people from spreading fake news “Murphy says I can now deduct my property taxes as charity”

Need to be a 5013c but sum states have been doing this... idk... I benefit currently from this plan. But it’s further down the rabbit hole. Why salt so high here? Like seriously why?

[Barms 98]

Salt like my post post is salty?  Or SALT ?

i hope it works.  I’m just trying to save people from thinking this is automatic.  It’s not. 

[Laker701 4]

Keep in mind that even if the IRS does consider it charity you can only deduct 90% of your charitable contribution from your property taxes. So the town gets to skim 10% off the top. 

 

[Zeke 5,504]

36 minutes ago, Laker701 said:

Keep in mind that even if the IRS does consider it charity you can only deduct 90% of your charitable contribution from your property taxes. So the town gets to skim 10% off the top. 

 

No. The town takes 100% always... it’s the fed everyone is trying to cheat.

[WP22 1,558]

I encourage EVERY Murphy voter to do as he says and deduct their SALT as a charitable contribution. I won't but I sure hope many of them do.

[Handyman 5,682]

Dumb enough to believe him, dumb enough to vote for him. They are dumb enough to try anything he says.

[Laker701 4]

4 hours ago, Zeke said:

No. The town takes 100% always... it’s the fed everyone is trying to cheat.

The way the law is written you can only deduct 90% of your charitable contribution from your property taxes paid to your town. You would have to donate 110% of you property tax bill to the "charity" in order to not owe any property taxes. Sorry I should of been a little more specific but it's pretty much a way for the town to charge you an extra 10% in property taxes and maybe get an federal deduction out of it

[brucin 923]

Since donating to charity is voluntary I choose not to donate. Now I pay no property tax.

[silverado427 10,679]

Hey I have a Idea. 

#1  Lets get rid of fat in schools  Way too many admins. 

#2  stop giving away free shit to illegals , Money food, free housing.  free medical

#3 Their should  be a standard formula per child i,m thinking 9,000 per kid.

#4 Fat greedy admins sucking up the school money before it gets to the classroom

#5 Keep their hands out of the till.

[1LtCAP 4,262]

welllll.....if it's a charity....then that would imply that no one HAS to pay.....which i think could be fraught with it's own problems. or i'm over-simplifying it.

[Howard 538]

There is no way the IRS will let this crap stand.  IF you live in a Blue state and try this you will get audited.  This is a sham transaction and you will likely pay penalties out the ass.  You can only deduct charitable contributions less the economic benefit you gain by them.  Thus if you go to a sporting event as part of a charitable donation you must reduce your donation by the fair market value of the tickets you received.  In this case you would have to reduce your sham charity deduction by the amount of your property taxes - you now effectively get almost zero deduction, you can only claim the 10% extra the state charged you for this sham transaction.  Nice try Libitard gov.

[Handyman 5,682]

44 minutes ago, Howard said:

In this case you would have to reduce your sham charity deduction by the amount of your property taxes - you now effectively get almost zero deduction, you can only claim the 10% extra the state charged you for this sham transaction.  Nice try Libitard gov.

I would deduct everything but $2000. That is what taxes on my place would be in a free state, so that must be the fair market value.

[Howard 538]

9 hours ago, Handyman said:

I would deduct everything but $2000. That is what taxes on my place would be in a free state, so that must be the fair market value.

Nice try, but don't think that would fly.

[capt14k 2,052]

Not a chance this will fly with Uncle Sam. Plus if implemented in NJ it would full of corruption. There would be people getting tax credits who didn’t donate, money from charity would disappear, etc. No chance this works.


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[Displaced Texan 11,731]

Yeah, I’m not going to be the test case.... I don’t think the IRS will take too kindly to this. 

[JackDaWack 2,895]

It's not really a charitable donation when the state is giving you dollar for dollar tax credits for the same exact services your supposed donation was for.