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Tuesday, November 22, 2011
Special Tax-Savings Opportunity Ends This Year from Chelsea District Library
click thru for details
Ends December 31, 2011
Support the Chelsea District Library
and Receive Tax Credit
Reduce your Michigan income tax or Michigan business tax with a credit for contributions to the Chelsea District Library endowment fund at the Community Foundation for Southeast Michigan.
The State of Michigan is offering a special Community Foundation Tax Credit for charitable gifts to the Community Foundation for Southeast Michigan, available through the end of the year, December 31, 2011. Michigan law permits individuals and businesses to reduce Michigan Income Tax or Michigan Business Tax, by a credit of 50 percent of the amount contributed to the Community Foundation provided the contribution is designated for permanent endowment.
Example of how tax credit works:
For individuals: A $400 gift would reduce a couple's Federal income tax liability by $70 (($400-$200 reduction in state income tax deduction because of Michigan credit) x 35 percent). The Michigan tax savings of $200 and the Federal tax savings of $70 result in a total savings of $270. Therefore, the married couple's gift of $400 will only cost them $130.
For businesses: A business with a marginal Federal income tax rate of 34 percent and a projected Michigan business tax liability of at least $100,000 makes a contribution of $10,000 to an endowed fund of the Community Foundation for Southeast Michigan. The Michigan tax savings would equal 50 percent of the gift, or $5,000. In addition, the contribution could reduce the Federal income tax liability of the business by $1,700 (($10,000-$5,000 reduction in state income tax deduction because of Michigan credit) x 34 percent). The Michigan tax savings of $5,000 and the Federal tax savings of $1,700 result in a total tax savings of $6,700. Therefore, the cost to the business of a $10,000 gift is only $3,300!
The Chelsea District Library is nonprofit organization whose mission is to provide equal access to quality resources that serve the lifelong cultural, educational and informational needs and interests of all people.The Library currently serves 14,000 residents in the Chelsea district - City of Chelsea plus Dexter, Lima, Lyndon and Sylvan townships and more than 20,000 individuals visit the Library each month.The Library's state-of-the-art facility is an access point for information including: books, periodicals, DVDs, CDs, audiobooks, downloadable e-books, subscription databases as well as access to the Internet.In addition to providing dynamic services to complement and support local schools and other important community needs, the Chelsea District Library strives to present timely, interesting and high-quality programs and events to engage and enrich the Chelsea community.
Anna Cangialosi, Marketing Coordinator Chelsea District Library