In the US, you will pay 7figs of total taxes once you book roughly $2.5m in a high tax rate state, not 8 or 9figs of income. The buyer is presumably in NY and likely NYC so will likely be of 40%+ total tax rate as an individual. Owning a business allows for a variety of deductions but earning as an individual does not.
The amount endowed to charity is $50k. Is that a lot? I mean sure, for most people, it is a very nice donation. But the watch sold for $5.3m plus fees. And the new owner will deduct said amount from their AGI, and netted an asset of ~$5m.
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Originally Posted by 77T
Sure it matters.
If you or your company are paying 7 figures in taxes then the context is from one who books 8 to 9 figures in AGI.
I agree you could have skipped that part but once it’s there, the context matters.
If you paid that level of FIT then you likely know many of the legitimate deductions allowed.
For my part, anyone who paid this much for the Tiffany Blue 5711 has endowed a great amount to the charity for which the auction benefited. They deserve to utilize the legitimate deduction (not including the FMV or BP).
On the other hand if one spouts numbers that misrepresent standing within the community of taxpayers then the representation appears biased and indignant.
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