>Buy 1000 pieces of underwear for $1000
>Donate to charity at an estimation of $5 per piece of underwear, write off $5000 as an itemized tax deduction for charitable donations
>Save [your tax bracket, let's say 25%] on $5000 in taxes, so $1250
>You just made $250 profit
Easy 25% returns.
Will this work?
I believe they call that tax fraud.
It's tax fraud. You are claiming the underwear to be worth $5 a piece when you know for a fact they're worth $1 a piece or less.
hell if you're going to lie about value, why not just buy one piece of underwear for $10 and donate it at an estimation of $1,000,000? because you'd be committing fraud and you'd get caught.
You're being too obvious.
$5 for a pair of underwear is reasonable.
There are standards by which the IRS appraises clothes donated to charities. If you are within a certain frame that they consider reasonable, you will pass.
If you are outside that frame, you will be flagged for fraud.
That's the difference between our examples.
its called being smart
Or
>Convince all your friends that you have done this and it works amazingly well
>They all try it on a large scale
>Report them all to the IRS
>Receive 15% of all their money as the legal Whistleblower Reward from the IRS
Fucking genius
Works until you are audited and then they see where the underwear was purchased at $1
Use cash.
So i have a bunch of clothes laying around like literally giant bags of it that i dont need that my mom brings home that she has given to her. If i donate all of it can i write it off at what i think its worth?
thats a lot of work for 250
Do it with $500,000
Yes.
You'd be less likely to be caught if you diversified the types of clothing you buy and donate.
Not much but you can feel good about donating to the needy.
Also if you donate them a long while later in partitions.
You will get audited and lose.
Charitable contributions are on the top 20 red flags of the IRS. Look it up
If you wear the underwear first and don't wash it before you donate it, it'll have an even lower actual value, so your profits will be higher.
Someone with a mid 5 figure salary donating 6 figures is very suspicious and will almost certainly be audited.
Brilliant.
you don't understand.
$5 for a pair of underwear is reasonable.
donating 1000 pairs of underwear is not reasonable.
if they see that you're donating 1000 pieces of underwear 2-3 years in a row, what do you think they'll say? "That's a totally reasonable sum of underwear for someone to be donating. It makes sense that he would have that many and need to get rid of them every year. He's definitely not lying to save money."
unbelievable the schemes you guys come up with and then can't understand when people explain why it won't work.
oh my god this post is the best. thank you for the laugh user.