December 21, 2010
Tax Relief Bill Extends Charitable Giving Incentives
Besides the widely reported aspects of the bill that may be of interest to nonprofits, including the estate tax reinstatement at a lower rate and higher exemption amount and the temporary 2 percent employee payroll tax cut, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 also extended numerous other expiring tax provisions through the end of 2011. Among those extended provisions are several incentives for charitable giving, including the incentive for contributions by certain corporate farmers and ranchers of capital gain real property for conservation purposes (section 723 of the legislation), the IRS charitable rollover (section 725), and the enhanced charitable deductions for contributions of food inventory, of book inventories to public schools, and of computer inventory for educational purposes (sections 740 to 742). Finally, the legislation also extended through 2011 the special rule that permits interest, rent, royalty, and annuity payments by controlled subsidies to their parent tax-exempt organizations to be excluded from unrelated business income if not in excess of fair market value (section 747).
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