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John works as an audit manager for one of the big four accounting firms (making $100,000 per year). Because he passionately believes in their work,
John works as an audit manager for one of the big four accounting firms (making $100,000 per year). Because he passionately believes in their work, he also provides his services as an accountant to Habitat for Humanity (a qualified charity). They pay him $4,000 which he in turn donates back to the charity. Being an auditor, he believes that he will break-even from a tax standpoint (i.e. his tax liability will be unchanged). Explain why he is incorrect.What would you advise instead?
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