youkoufiona
please explain a sentence A married couple may make a special election that allows one-half of the gift made by the donor-spouse to a third party to be treated as being made by the nondonor-spouse. 1. Could anyone reorganize the sentence by using simple sentences? 2. What does "election" means here? Is it the same meaning as it is in the "presidential election"? Thank you!
Feb 2, 2017 4:39 PM
Answers · 1
This sounds like it is from tax avoidance law so if you are considering using it maybe get it explained by someone from a legal background. Election means choice. If you have a married couple, and one earns a lot of money and the other earns a little, the higher earner pays more tax. Charitable donations are tax free up to a certain amount. If the higher earner wants to make a large donation of money to a charity and avoid paying any tax, they can choose to claim that half of the gift was given by the lower earner. In this way the couple overall benefits by paying slightly less tax. This isn't a standard procedure which is why it is a special election. The third party is the charity receiving the money.
February 2, 2017
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