Charitable IRA Rollover Made Permanent!
The tax extenders package, known as the Protecting Americans from Tax Hikes (PATH) Act of 2015, makes permanent a number of provisions that have previously gone through a constant cycle where they expired at the end of a given year, only to have Congress extend them for a limited time. This cycle has made it difficult for donors to plan their giving effectively.
The key charitable provisions that are made permanent in the tax package allow:
---taxpayers over 70 1/2 to make donations directly from an IRA and will not be taxed on the amounts—up to $100,000 (The Charitable IRA Rollover)
---enhanced deductions for charitable contributions of real property for conservation purposes, and for donations of food inventory
---shareholders in an S corporation to reduce their basis in the S corporation's stock under Section 1366 only for their share of the basis of property contributed by the S corporation—not the fair market value.