Many of the new tax laws and regulations will have an impact on charitable giving and related deductions. A deadline fast approaches that could benefit you if you’re 70½ or older, so we’ll focus now solely on the IRA Charitable Rollover, extended once again.
In a nutshell:
Donors age 70½ or older are again eligible to move up to $100,000 from their IRAs to qualified nonprofits without having to pay income taxes on the money. Congress granted a late extension and stipulated two special rules:
1) Qualified distributions made by Feb. 1, 2013, may be counted retroactively for the 2012 tax year.
2) A taxpayer who took a distribution from an IRA in December 2012 may make a contribution to a qualified nonprofit before Feb. 1, 2013, and treat this as a 2012 transfer.
Of course this just scratches the surface and summarizes the two rules. There are many questions answered and key points elaborated on the attached PDF written by the legal department of the Council on Foundations.
If you still have questions after reviewing the attached document, please contact one of your philanthropic partners at NCCF: Beth Boney Jenkins, vice president for development; or Mary Morgan, philanthropy counsel. Or call us at 919-828-4387 or 800-201-9533, and we’ll put you in touch with someone who can assist.
Disclaimer: This summary information and the PDF supplied from the Council on Foundations are not intended as a substitute for legal, tax or professional advice.