Seth asked 3 years ago
Sir,
I am married to a Malaysian citizen and we are living in the US. Each month we send money back to Malaysia to support her family. I would like to write this off as a charitable expense on my taxes. Would it be possible to set up some type of charitable foundation or not for profit entity from which I can receive proof of charitable donations? The money goes to supporting the family’s living expenses, rent, medical bills, food bills, etc. I understand that in Malaysia you can write these expenses off as Filial piety and take tax deductions. Here we do not have a filial piety category from which I can claim a tax exemption. Are there any other ways you can think of from which I can claim a charitable donation for this money being sent?
If this is possible, how can I start and how much would it cost? If you do not know, can you recommend someone I can speak with?
Thanks.
KCLau Staff answered 3 years ago
Hello Seth,
Thank you for reaching out with your query.
Firstly, I’d like to clarify that while I can provide general information, I’m not qualified to give specific tax advice, especially concerning the intricacies of the US tax system.
In Malaysia, there is no concept of “filial piety” where individuals can claim tax deductions for supporting their parents. Malaysians can only claim tax relief for the medical fees paid for their parent’s medical bills up to a certain limit. However, this is specific to Malaysian tax residents only and do not directly translate to the US tax system.
If you’re considering setting up a charitable foundation or a not-for-profit entity, it’s essential to consult with a tax planner or legal expert who specializes in this area. They can provide guidance on the feasibility, process, and potential tax implications.
I recommend reaching out to Richard Oon from TY Teoh in Malaysia. He’s knowledgeable in tax planning and might be able to guide you further or recommend someone in the US who can assist you.
Always ensure you’re getting advice from a qualified professional when it comes to tax matters, as the implications can be significant.
Best wishes,
KCLau