38 Oxley Rd: Charitable tax deduction enough for 6 years’ taxes?

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Did the seller of 38 Oxley Rd take a charitable donation tax deduction?

38 Oxley Road was sold to Mr Lee Hsien Yang for an estimated $24 million in December 2015, about six months after the death of our former Prime Minister, Mr Lee Kuan Yew.

The seller of the property donated the entire estimated $24 million sales proceeds to charity, and Mr Lee Hsien Yang donated $12 million (half the sale price) to charity.

Did the seller take a charitable donation tax deduction?

If so, the estimated tax credit is about $13.2 million (2.5 times tax deduction assuming the highest marginal tax rate of 22 per cent).

The seller’s annual salary is reported to be $2.2 million – which would compute to an estimated annual income tax of about $450,000.

So, does it mean that the estimated charitable tax credit of about $13.2 million may be enough to pay for about six years (maximum carry forward of five years) of the seller’ income tax?

Leong Sze Hian

About the Author

Leong
Leong Sze Hian has served as president of 4 professional bodies, honorary consul of 2 countries, an alumnus of Harvard University, authored 4 books, quoted over 1500 times in the media , has been a radio talkshow host, a newspaper daily columnist, Wharton Fellow, SEACeM Fellow, columnist for theonlinecitizen and Malaysiakini, executive producer of Ilo Ilo (40 international awards), invited to speak more than 200 times in over 30 countries, CIFA advisory board member, founding advisor to the Financial Planning Associations of Indonesia and Brunei. He has 3 Masters, 2 Bachelors degrees and 13 professional  qualifications.