Gov. Dannel Malloy Offers Plan To Ease Connecticut Tax Burden

WSJ ^ | Feb. 5, 2018 | Joseph De Avila

[Sasparilla]

Bernie Madoff helped cook this scam up.

[hal ogen]

A dangerous combination exists there: lunatics, criminal pols and idiots.

[vette6387]

“California has already put this in place”

No, it has not! I just received an e-mail from my REPUBLICAN Assemblywoman asking me what I thought about the PROPOSED LEGISLATION!
But for me, I hope they do pass it, because the FEDs will strike it down. CA is the “big fish” here with CT just a hanger on! This curtailment of allowable tax deductions in the new Federal Law. is going to raise hell here, and I can’t wait for it to happen.

[Consistent]

So stupid. A donation only counts as a charitable deduction if it is made with no value received in return. If Connecticut, California, and the others play this, you receive something in return, i.e., exemption from an equal tax bill.
In reality, if this worked, every state would do it, because now you would get the doubled basic deduction, as well as the full deduction of state taxes.
The only hope this strategy has is if so many people do it, that the IRS doesn’t have the resources to go after them all. Unfortunately, I think others would consider it revolution, with attendant consequences.

[nopardons]

Well then several articles posted here, over the past weeks, have misstated the case.

Still and all, I don't trust Roberts as far as I could throw the Empire State Building, so IF this were to go to the SCOTUS, I have doubts that anything would be done. OTOH...until and IF that happens, the IRS could go after ALL of those attempting to circumvent the new laws re deductions and probably shall.

[T Ruth]

For donations over $250, the taxpayer must have a letter from the "charitable organization." Under the law:

(B) Content of acknowledgement. An acknowledgement meets the requirements of this subparagraph if it includes the following information:

(i) The amount of cash and a description (but not value) of any property other than cash contributed.

(ii) Whether the donee organization provided any goods or services in consideration, in whole or in part, for any property described in clause (i).

(iii) A description and good faith estimate of the value of any goods or services referred to in clause (ii) or, if such goods or services consist solely of intangible religious benefits, a statement to that effect.

[T Ruth]

So, in effect, CPA's are going to be the enforcement. They will not sign off as preparer of a return with a sizeable "charitable" contribution without the required acknowledgment letter from the charitable organization. I can't see the state's phony charities issuing such letters.

Probably 90% of the people affected by this are going to use a CPA or other tax preparer for their returns.

I don't see this idea going anywhere.

[vette6387]

California has nineteen “Funds to which you can Contribute” and take the “contribution” as a credit on your State taxes. In each case, the fund” has been approved by the IRS and the money actually goes to the thing for which you are making the contribution.

Examples:
California Seniors Special Fund
Alzheimer’s Disease/Related Disorders Fund
Rare and Endangered Species Preservation Program
California Sea Otter Fund
School Supplies for Homeless Children Fund
California Peace Officer Memorial Foundation Fund
Revive the Salton Sea Fund

Supposedly, none of the money collected, goes into the State’s operating budget.

[RetiredTexasVet]

There have been all kinds of schemes in the past similar to these to dodge taxes ... with a stroke of the pen the schemes are declared null and void and “the taxpayers using them are subject to penalties and interest” .... been several of them in years past. I remember one with a bunch of Hollywood peckers and sports people .... they really got nailed.

[nopardons]

Which one can "donate" to INSTEAD of paying property and state income tax?

[nopardons]

Exactly so and also fined for NOT paying the tax.

[vette6387]

“Which one can “donate” to INSTEAD of paying property and state income tax?”

None of them currently, unless the state passes this law establishing the one that’s under discussion.

[nopardons]

Even IF that does pass, it shan’t work; Trump has already said that and the IRS agreed to his statement.

[vette6387]

“Even IF that does pass, it shan’t work;”

Of course it won’t work, so I actually hope the legislature passes it, because it will foster the Feds suing CA and winning, causing RATs in the blue states to soil themselves. Trump has to make them “heel” to Federal Tax Law.

[11th_VA]

I think I’m going to ‘donate’ my entire paycheck to my wife, and not owe ANY taxes ...

[Pontiac]

Is your wife more fiscally responsible than Connecticut?

;)

[Deplorable American1776]

Connecticut taxpayers, in November, please vote smart...(Okay, we know most voters in the small cities and towns do vote smart, but we need to give New Illegal Haven, Bridgeport and Hartford to California for Northeastern California, but I doubt California would want those cities..) 😀

[Pontiac]

Maybe you can palm them off to Washington.