Sunday, January 20, 2013

IRA gifts to charity make a return

Qualified IRA Charitable Distribution
View Hope's IRA email
The nonprofit industry and advocacy groups fought for two long years to protect the charitable tax deduction.  After a long, hard fight, not only did Congress and the President preserve the charitable tax deduction, but they also revived the Qualified Charitable Distributions IRA clause retroactive to 2012. 

What is a Qualified Charitable Distribution?
Under prior law, an IRA owner age 70½ or older could transfer up to $100,000 annually from an IRA to a qualified charitable organization without paying any tax on the distribution. (The annual exclusion limit was effectively doubled to $200,000 for a married couple.) The distribution wasn't deductible either – so it amounted to a "tax wash" – but this was a good way for older taxpayers to give to charity without exhausting other funds. Even better, the payout counted as a required minimum distribution (RMD).
Read more from AccountingWeb

Although the original provision expired at the end of 2011, with the passage of the American Taxpayer Relief Act of 2012, the provision was retroactively extended.  As a result, individuals can still make a Qualified Charitable Distribution for 2012, as long as they get the transfer done before January 31, 2013. 

Now is the time to get the word out on this opportunity. 

No comments:

Post a Comment

Please feel free to leave feedback. Comments are not publicly displayed.