re: Mizzou NIL

Appreciate the support for the Mizzou program. But, you realize the tax brackets are "marginal". Let's say the 52% to 55% bracket change occurs at $750k and your taxable profit is $1M. Then you only pay the 3% increase on the amount above the 52% level or $250k in this case, not the full $1M. Since the increased tax rate is 3% on $250k the "extra" tax is $7.5k not $30k.

So, in your example of $760k with a $10k NIL deduction, you reduce your taxes by $5.5k (since it's all in the 55% bracket), not $30k since the amount below $750k remains in the same bracket(s). You paid $10k to get that deduction, so it cost you $4.5k to give Mizzou a $10k NIL. Awesome donation and much more economical to make it but it is still costing you money to make the donation.