Question : is a charitable foundation such as the tiger woods foundation a tax shelter?
- asked by Jerry W
All Answers:
Answer #1
It is a shelter to the extent that theearnings/profits from what he puts into thefoundation does not create a tax liability for himpersonally. The downside is that he cannotpersonally benefit from the investments owned bythe foundation. Hope this helps.
- answered by jwishz
Answer #2
Rather than call it a tax shelter, call itappropriate tax planning.
- answered by nealeinmi
Answer #3
No, not really. The money he puts into it isprobably tax deductible, but that is differentfrom a tax shelter. It's similar to my writing acheck to the Salvation Army except that TigerWoods has far more money to contribute than I do.Atax shelter is an investment that is specificallydesigned to reduce or minimize taxes. For example,a 401k plan at your job is a tax shelter. Afoundation can make investments, but it is not aninvestment itself because the people who foundedit don't make any profit from it. Any gains thatthe foundation makes remain with the foundationand are used for charitable purposes or thefoundation's operating expenses.
- answered by The Shadow
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