The Service has ruled privately that the partial termination and distribution to the remainderman of a undivided portion in a charitable remainder unitrust by a surviving spouse entitles her to immediate income and gift tax deductions for a transfer to a charity and will not disqualify the trust.   MORE »

The Service ruled privately that a decedent's trust's purchase of interests in two limited liability companies for distribution to a charitable lead unitrust and a charitable lead annuity trust established by a survivor's trust will not be an act of indirect self-dealing.   MORE »

The Service has ruled privately that the partial termination of a charitable remainder unitrust following the death of the first spouse entitles a surviving spouse to income and gift tax deductions for the transfer to a charity and the remaining trust won't be disqualified as a CRUT under section 664(d)(2).   MORE »

The Service ruled privately that the early termination of a charitable remainder unitrust and division of the income and remainder interests between the trust's surviving income recipient and the charitable remainderman, based on the actuarial will not be self-dealing under section 4941(d).   MORE »

The Bush administration has announced in a bipartisan charitable giving compromise bill, the Charity Aid, Relief, and Empowerment Act of 2002 (CARE), cosponsored by Sens. Joseph I. Lieberman, D-Conn., and Rick Santorum, R-Pa., that includes some of the administration's tax incentives and faith-based initiatives. The bill would give the charitable contribution deduction to nonitemizers, allow tax-free distributions from IRAs for charitable purposes, increase the percentage limit for corporate charitable contributions, and allow some eligible lower-income Americans to set up individual development accounts (IDAs).   MORE »

For purposes of determining the present value of an annuity, an interest for life or a term of years, or a remainder or a reversionary interest, Revenue Ruling 2002-10 indicates the charitable mid-term federal rate under Code Section 7520 for the month of March is 5.4%.   MORE »

Last week we reported on the Charity Aid, Relief, and Empowerment Act of 2002 (CARE), cosponsored by Senators Lieberman and Santorum. The full text of the bill, S. 1924, is now available in Adobe .pdf format.  MORE »

Most gift planners are aware that the deductible amount of a charitable gift may be reduced when depreciable property is involved; however, there has been little guidance providing planners with a practical summary of the applicable rules. In this edition of Gift Planner's Digest, Minneapolis accountant Tom Wesely clarifies those situations where depreciation can significantly impact the charitable deduction, and also analyzes depreciation issues when property is contributed to a charitable remainder trust.  MORE »