Charitable IRA Rollover Made Permanent!
Congress has passed a tax extenders package that would make permanent the Charitable IRA Rollover provision, and President Obama has signed it into law.
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.
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.