I have a situation as follows, and do not know how to handle it:
In 2010, I liquidated $50k from my mutual funds/ira accounts in order to make a donation
to a non-profit
organization that has its headquarters in the USA, however as I live in Israel, I directed this donation to the branch of the organization here, by wiring the funds that were liquidated to my bank account directly to the branch's bank here in Israel.
Now (without going into the details), I am being given back a large part of this donation.
1) The first question is, if I receive this refund to my US
bank account, do I need to pay taxes
on this "income
2) if I receive this refund to my Israeli bank account, do I pay tax, and where?
3) Can I report the part of the donation that isn't being refunded as a tax deduction
since my only proof of the donation is a wire transfer to the bank of the organization in Israel?
4) Because the branch is itself in Israel, can I still claim this donation since technically the donation was made to an "International" company?
Essentially, I want to know how to save paying double taxes both for me and the non-profit organization, and what are the tax laws
concerning giving donations to an international branch of an organization, as well as tax laws concerning receiving refunds of donations given.