JFGNH BLOG

2014 IRA Charitable Rollover Breaking News

Lisa Stanger - Thursday, July 17, 2014

 December 17--

Congress has passed the tax extender bill (HR 5771) retroactive to January 1, 2014.  
The President is expected to sign the bill this week. 
This bill will extend 55 tax provisions through December 31, 2014 including the IRA Charitable Rollover.


There are four key charitable provisions in the bill:

1. IRA Charitable Rollover – Each IRA owner who is 70 1/2 or older may make a transfer of up to $100,000 per year to a qualified charity. The IRA charitable rollover is tax-free and not included in adjusted gross income. Click here for more information on the IRA Charitable Rollover.

http://www.newhavenjewishfoundation.org/announcements/ira-charitable-rollover-bill-passed

2. Conservation Gift Limits – Gifts of property for conservation purposes benefit from increased deduction limits. The normal 30% limit for appreciated property gifts is increased to 50% and the carry-forward limit is extended from five years to 15 years.

3. Food Inventory Gifts – An enhanced deduction for contributions of "apparently wholesome" food will be available for all donors. The deduction is the lesser of twice the basis or basis plus one-half of the appreciation.

4. S Corporation Appreciated Gifts – A Subchapter S corporation may give appreciated stock or land to charity. Only the basis of the S corporation in the donated asset will be used to reduce the shareholder basis, even though the full fair market value deduction is claimed by the shareholder.

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On December 3,  2014, the House overwhelming voted, 378-46, to retroactively restore nearly all of the 55 tax provisions that expired at the end of 2013. The new legislation would give taxpayers immediate relief for 2014, but once again, leave us all in unknown status for 2015.  The Act, known as the Tax Increase Prevention Act of 2014 (HR 5771) includes one year retroactive extensions to January 1, 2014 for the IRA Charitable Rollover as well as many other tax provisions.

 

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IRA Charitable Rollover: House approves Permanent Extension retroactive to 1/1/14
Today, the House of Representatives passed by 277-130 the America Gives More Act (H.R. 4719 https://beta.congress.gov/bill/113th-congress/house-bill/4719/), a package of five charitable provisions that includes making permanent three expired tax extenders: the IRA charitable rollover, the enhanced deduction for donating land conservation easements, and the enhanced deduction for donating food inventory. It would also extend the annual charitable contribution deduction from December 31 until April 15 of the following year as well as a measure to simplify to 1 percent the excise tax rate for private foundations' investment income.

For the IRA Charitable Rollover, the bill makes this provision permanent, retroactively to January 1, 2014.

The Senate Finance Committee has approved a retroactive two-year extension of the IRA Charitable Rollover through the end of 2015. Consideration of that bill by the full Senate was scuttled last month over a political controversy to repeal portions of the Affordable Care Act.

It is expected that the House and Senate will not reach agreement on how to handle extension of the IRA Charitable Rollover, as well as other so-called “tax extender” provisions until after the November election.

The IRA Charitable Rollover is a great charitable giving opportunity for your clients and it also benefits our community.

I will keep you informed as I hear more. 

 

IRA charitable rollover opportunities still available for 2012!

Lisa Stanger - Tuesday, January 08, 2013
  1. Although the most recent extension was enacted on January 2, 2013, the extension allows individuals who received an IRA distribution in December 2012 and who make a chariable gift i. after receiving the IRA distribution but ii. before February 1, 2013, to elect to count that distribution (or a portion thereof) as a 2012 qualified IRA charitable rollover. 
  2. A qualified charitable distribution made in January 2013 is permitted to be (1) treated as made in the 2012 calendar year and permitted to count against the 2012 $100,000 limitation on the exclusion, and (2) treated as made in the 2012 calendar year and thus permitted to be used to satisfy the taxpayer’s minimum distribution requirement for 2012.

breaking news-IRA Charitable Rollover Extended

Lisa Stanger - Wednesday, January 02, 2013

The last-minute fiscal cliff compromise, H.R. 8, which will also be known as the “American Taxpayer Relief Act of 2012” (or "ATRA") permanently extends the majority of tax cuts (“the so-called Bush tax cuts”) that were scheduled to expire at the end of 2012.  In addition, ATRA retroactively reinstates some rules that had expired in 2011, such as the IRA Charitable Rollover and extends the provision through the end of 2013. Thus, rollovers during calendar year 2012 of up to $100,000 directly from an IRA trustee to a charity, other than a donor advised fund, supporting organization, or private foundation, will be treated as a qualified charitable distribution.

 Because the bill was passed so late (technically after the end of 2012), ATRA provides that rollovers directly from IRAs made before  February 1, 2013 can be treated as a qualified charitable distribution for 2012. A qualified charitable distribution made in January 2013 is permitted to be (1) treated as made in 2012 calendar year and permitted to count against the 2012 $100,000 limitation on the exclusion, and (2) treated as made in the 2012 calendar year and thus permitted to be used to satisfy the taxpayer’s minimum distribution requirement for 2012. Another ATRA relief provision permits the recharacterization of any distribution made in December, 2012 that would have qualified, as a qualified rollover to a charity for the calendar year 2012 if it is subsequently transferred in cash to a charity before February 1, 2013.