Watch for red flags. DO NOT DONATE THRU THEM Taxpayers should be wary of any scheme that involves transferring assets to an LLC, followed by the âdonationâ of a majority percentage of nonvoting, nonmanaging, membership units to a charity as a âcharitable contributionâ while the taxpayer retains control over and access to the assets. A valid charitable contribution requires the taxpayer give control over the donated assets to the charity.
Taxpayers should use caution when they are promised any personal benefit, beyond the tax deduction, based on a charitable donation.
Taxpayers should scrutinize transactions that include potential red flags. A few examples are described below:
Promoters marketing a transaction as a way to grow wealth in a âtax-free environmentâ and claim charitable contribution deductions. Promoters marketing a plan that requires the creation of one or more entities in order to make a charitable donation. Creating entities that do not engage in any business activity to facilitate a charitable donation. Donating an interest in an LLC that loans cash or other assets back to the taxpayer or a related party. The charity, as the majority owner of the LLC, has no control over the LLC or its assets. The taxpayer is allowed to personally use the assets contributed to the LLC after the donation. The promoter assists the taxpayer in the creation of intellectual property to fund the LLC prior to the donation. The taxpayer uses the LLC funds to purchase life insurance policies benefitting their heirs or a related party after the donation. The taxpayer retains the ability to reclaim the donated LLC interests from the charity for less than fair market value. The promoter requires the taxpayer to use specific appraisers and/or charities. Appraisals fail to take into account all facts and circumstances of the entire transaction, like the ability of the taxpayer to remove all assets from the LLC after the donation. Properly claiming a donation of a closely held...
   Read moreWe walked in at 10:45 and right away we were met by the associates at the cash register telling us there was 10 minutes left to shop (shouldâve been 15). She calls for her coworker (Jonathan) to âbe on doorâ and they were signaling secretly to each other whether they should let customers in or not (again, 10:45) No exaggeration, 3 minutes later she (shorter girl short bleached hair) screams an announcement to all customers âALRIGHT 5 minutes left you guys canât shop anymore come and payâ we were disgusted with the service and walked out instead of buying the costume in hand. While we were walking out there were 3 customers asking if they were allowed to come in and the guy named Jonathan at the door (while texting on his phone) said âno sorryâ and I was in my car by 10:51. Not letting in customers before closing time!!! With plenty of time to spare to grab something. I saw a couple of people walk out behind me after the screamed announcement and figured they thought the same as me. Iâll just purchase on amazon. Sheesh...
   Read moreI went in today to the fullerton location . After walking in me and my kids went straight to the costume that i was looking for (we went beginning of October as well so we knew what spot in the store to go) I opened the costume , just to see the how big it was since we canât try them on because of covid . So a minute after a lady walks up , at first i thought it was a customer looking at the costume i was holding . And i thought maybe i took the size she wanted, since she was staring at me . So then i go to the other aisle and i notice sheâs there too , so then i thought okay this is weird . And i told my kids letâs walk around different spots in the store to see if she follows us , and sure enough she was following us where ever we went . I was so uncomfortable, i would never take stuff with out paying !!! specially a costume !!!! I didnât even want to take the costume no more but i really needed it . NEVER EVER GOING TO...
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