Question

Mr. Able wants to set up a tax-deductible fund to be used to support young talented individuals to enhance their abilities. What would you recommend Mr. Able do?

Answer 1

Mr. Able have to open a Private Foundation to set up a Tax-deductible fund.

Step-by-step explanation:

• They will exclude donations up to 30 per cent to 60 per cent of our income, based on the charity's existence and tax-exempt status.

• You will state your expenses to assert a charitable deduction on your tax return.

• Private foundation contributions are tax deductible up to 30 percent of the adjusted gross benefit for assets and up to 20 percent of the income for assessed shares, with a five-year hold forward.

therefore Mr Able must donate his funds