December 16, 2011
IRS Issues Release on Year-End Giving; Expiration of IRA Rollover
The IRS issued IR 2011-118 reminding taxpayers of new charitable giving provisions that have taken effect in the last several years - rules for clothing and household items, substantiation rules for monetary gifts, and special contribution rules for individual retirement account (IRA) holders. The provision offering IRA owners a tax-free transfer of up $100,000 to an eligible charity expires at the end of 2011. This provision is available to taxpayers regardless of whether they itemize or take the standard deduction. The IRA funds must be contributed directly by the IRA trustee to the eligible charity; because the transfer amount is not taxable under the IRA distribution rules, no deduction is available for the transfer. Not all charitable organizations are eligible recipients; donor-advised funds and supporting organizations do not qualify. The amount(s) transferred pursuant to this provision are counted in determining whether the IRA owner has met the required minimum distribution rules.
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