What does this mean?

[redqueen]

Link to tweet

Is it bad or good? Why do it?

[George II]

1. It's good - he spent $50,000 and only used $5,000 for a charitable deduction. Don't know the rest...

....of his return, but it's possible he might have been able to deduct the entire $50,000.

[42bambi]

3. We donated a truck to PBS with a value of $4000 but could

only deduct 10% of the value.

[Leith]

5. That sounds like he followed the rules in spirit and to the letter

That sounds like a generous and honest man to me.

He most likely was not thinking of running for president 8 years down the road. Therefore, a donation without an ulterior motive.

[karynnj]

6. True, if they were new and unworn

Also, there are guidelines on how to value used clothing donated. I think you need an appraisal if claiming over $500 in these types of donations. 10% of original value sounds reasonable, but I don't know if they should have had an appraisal.

[justhanginon]

2. I think it means he only declared a tax deduction

of $5000 instead of the true value of their worth, the $50,000 they actually paid for the merchandise. If that is correct it is a good thing.

[W_HAMILTON]

10. Not quite.

The $5,000 is what he stated was the "true value of their worth."

The $50,000 is what he claims he originally paid for them. He is donating used clothes, so, their original purchase price is not what the "true value of their worth" would be after wearing them for however long.

[Hoyt]

4. Sounds like he donated WORN clothing and valued it at $5,000. Interestingly, if he had valued it at

$5,001, he would have had to obtain a formal appraisal. That's still probably a good thing, assuming the clothing was in decent/wearable condition. If not, he's like too many Americans who donate junk and fudge on the value.

[bucolic_frolic]

7. Yes it makes the deduction unassailable

[questionseverything]

8. if you have ever shopped second hand, imagine how many clothes it would take to cost 5 grand

rich people inflate the worth of their donations for tax advantages...is legal but unsavory in my opinion

since trump changed the tax law it is very hard to itemize anyways

[W_HAMILTON]

9. He donated his old clothes to a charity and took a $5,000 taxable deduction for it.

Whether that is good or bad is subjective.

[redqueen]

11. Thanks all. I'm still not sure what to think

I don't know if I've spent that much on clothes in my life. It seems like an awful lot.

And now I get the whole 10% thing. Not sure why they'd report that if it's just how it works.