Happy Holidays! Thanks to the generosity of our supporters, 2015 has been a very good year for WHQR and our listeners. Here's information on a provision of the law that may be beneficial to some donors:
Congress has passed a tax extenders package that would make permanent the Charitable IRA Rollover provision, and President Obama is expected to sign it very soon if not already.
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;
- and 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.
Various sources have published information on these provisions. For more information, here is an article in Independent Sector.
WHQR does not provide specific financial planning advice and, obviously, there are many worthy organizations in our area deserving of your support. But we certainly encourage all listeners to give generously to their favorite causes at this important season.
And we certainly hope that you will consider WHQR as one of those causes. If the Charitable IRA Rollover provision applies to you, please consult your financial adviser for guidance.
HAPPY HOLIDAYS AND A PROSPEROUS NEW YEAR FROM WHQR!