Buy Books > Donate / Gift > Tax Relief ?

I almost fell off my chair when WK told me what she wanted to do for the MADE book sale.  She told me that since she hasn't use up the book purchase RM1,000 limit for 2009 tax relief, she might as well buy some brand new books and donate to them to the MADE charity book sale.

I must have asked her "Are You Sure" for at least 10 times cos it's not a direct deduction..it's just a relief / reduction on the taxable income amount hence slightly lesser tax payable.

There are several ways / methods to capitalise on for this purpose:

Make direct contribution to approved NGOs that provides tax exemption receipts.

There is no amount limit so you can donate as much as you want to or can afford to. 

The above is a bad example.  Firstly, I filled the amount into the wrong box - lol!  Secondly..the amount is way too little.  I could have done more. But..sometiems I have doubts on how the funds collected are being used or..abused.  So..I tend to hold back a little until I am somewhat convinced.  GHY just shared with me another good way to contribute ..will share if I eventually get around to do it.

Of course, there are other items like :

• 
  
  The default RM8,000 personal tax relief  that everyone gets
  
  
  
• LIfe & Medical Insurance
• Parents medical bill

Read more about How to Reduce Tax - HERE


BUY MORE BOOKS. READ MORE BOOKS.  can also help reduce our taxable income.  Bear in mind that the amount spent will not be deducted Directly from the tax payable.  That's why I asked WK several if she is sure about buying the books for MADE purposes.

A quick calculation as follows:

• Assume total taxable income for Y2009 is RM100,000
• Assume full entitlement relief from EPF(RM8,000), Insurance(RM9,000)
• Total Taxable Income = RM83,000
• IF...we spend up to RM1,000 on Books
• Total Taxable Income is reduced to RM82,000
• First RM70,000 will be taxed RM7,275 based in the fixed rate from IRB of approx 10.4%
• The balance RM12,000 will be taxed 24% = RM2,880
• Total TAX PAYOUT = RM10,115

If the RM1,000 books purchase releif is not utilised, the total TAX PAYOUT will be RM10,395.
In other words, Tax savings is only around RM240.


So..it is not really savings if one purposely goes out to use up the limit unless the purchases are necessary for shildren education, gifts, etc.

In WK's case...she has a big huge heart :-)  THANK YOU on behalf of John Paul!

Great books!  You can get these at discounted prices at the MADE sales.

BE THERE:

21 November, 2009, at Centre Point, Bandar Utama. 

From 10am to 6pm

(Note time changed)

Oh..look ..I also did my small contribution :-) Was thinking....WTH la....what's hundred over bucks,.when I can spend same amount on a pair of jeans for example.  hehe.

It feels real good to be able to GIVE...

Allow me to take this opportunity to thank a few others who took the trouble to scan through their shelves to pull out books for the sale ~ Thank You Very Much PPL, Chris, YHL, MK, LSL :-)