Pease Fine

Reply #15

Think — Tue, 12 Jul 2016 16:09:41 GMT

Apparently Gruber was right, not many people understand the concept of substance over form.

Call it what you want but a fine by any other name is still a fine

Reply #14

zephbe — Mon, 11 Jul 2016 20:11:30 GMT

In addition to a series of tax rate increases, 2013 also brought back a more subtle tax increase for high income earners: the Pease limitation on itemized deductions. This provision, named after the late Congressman Donald Pease, reduces the value of itemized deductions for high income taxpayers. It works by reducing the value of a taxpayer s itemized deductions by 3 percent for every dollar of taxable income above a certain threshold ($254,200 single; $305,050 married). The phase-out of the val... [ More ]

Reply #13

Think — Mon, 11 Jul 2016 19:42:00 GMT

If you go 30 MPH in a 25 MPH zone you get a ticket which is supposed to modify your behavior so you don't go over 25 MPH.

If you make over a certain amount of money and donate to charity you get fined so as to discourage you from giving money to charities.

Reply #12

Think — Mon, 11 Jul 2016 19:37:07 GMT

Substance over form! Pease is a fine.

Reply #11

Murgatroyd — Mon, 11 Jul 2016 13:33:17 GMT

This one doesn't look, walk, or quack like a fine. It just says that past a certain point, charitable donations are no longer tax deductible.

Reply #10

Think — Sat, 09 Jul 2016 14:33:03 GMT

Over a certain amount and they want a copy of the check and a letter from the charity I believe.

Reply #9

ArizonaDream — Sat, 09 Jul 2016 12:50:28 GMT

That would be fun to do, but not sure I'd want to give up the tax deduction. Well, I suppose one could still claim the deduction, but risk an audit.

Reply #8

John99 — Sat, 09 Jul 2016 12:33:00 GMT

Can't you just drop a charity a wad of cash... I mean do it anonymously? You quickly hand it to someone in the correct department of a charity but just don't do much talking, as in say this is for such and such, have a nice day... Turn around and leave.

Reply #7

Think — Fri, 08 Jul 2016 20:57:44 GMT

If it looks like a fine, walks like a fine and quacks like a fine then it's a fine.

Many people know that under Obamacare you have to pay a penalty for not having health insurance.

What most people don't know is that it isn't called a penalty it's called a shared responsibility payment .

A rose by any other name......

or if you prefer, A f*rtblossum by any other name smells just as foul

Reply #6

realtorjim — Fri, 08 Jul 2016 20:49:15 GMT

Named after Donald Pease, a congressman from Ohio. Some call it a fine, others a surtax, and of course there is that thing called a rule. Call it what you will, but I for one would like to be in the room where it even matters.

Reply #5

Think — Fri, 08 Jul 2016 20:39:15 GMT

It's just a way for them to make it look like they are sticking it to the big guy while they are really just trying to suck more gravy for themselves.

Political Contributions are generally not tax deductible like charitable contributions are.

So they figured if they fine higher income people for giving money to charity then the higher income earners would probably divert their charitable contributions towards political contributions since the political contributions aren't deductible... [ More ]

Reply #4

Think — Fri, 08 Jul 2016 20:25:30 GMT

There are different cases for various charitable deductions with 50% of your income being the maximum you can deduct in one year. You can still deduct the rest in following years so you have to be careful.

example you make $50,000 in a year and you give all $50,000 to charity then you can only deduct $25,000 in the year you donated it and you have to pay taxes on the other $25,000. You can carry over the other $25,000 in deductions in following years.

That is the tip of the iceberg a... [ More ]

Reply #3

HoLeeKau — Fri, 08 Jul 2016 19:50:31 GMT

All about PEP and Pease.

http://www.heritage.org/research/reports/2013/06/pep-and-pease-hurt-larger-families-most-and-slow-growth

Reply #2

destinycreation — Fri, 08 Jul 2016 19:22:31 GMT

I am wondering if there is any way around the Pease fine if I just want to follow the 50% rule.

What is Pease fine and the 50% rule ??? [Is this word Pease misspelled perhaps

Reply #1

LiveInGreenBay — Fri, 08 Jul 2016 18:51:37 GMT

Never heard of that. Why would they fine a lottery winner for donating some of the money for charity? Are they trying to recoup money lost through tax deductions

Pease Fine

Think — Fri, 08 Jul 2016 18:38:47 GMT

There have been topics on here about anonymity but I have pretty much given up on that.

I am wondering if there is any way around the Pease fine if I just want to follow the 50% rule.

I don't believe the winner should be fined for giving money to charity that is absolutely ridiculous.

There must be some way to donate to charity and avoid the fine.