Cash donations, as long as the actual amount of the donation is substantiated, will not result in an IRS challenge. But donations of objects such as fine art and collectibles have always been problematic. In this article from Leimberg Information Services, Orange, California attorney Joy Gibney Berus shares ten "must know" TIPs on donating personal property items such as art, antiques, and collections so you may assist your clients in maximizing all of the benefits to which they are entitled.  MORE »

In the continuing crackdown on charitable split-dollar life insurance programs, the Tax Court has held that David and Irene Roark may not claim 1998-1999 charitable deductions for amounts given to a section 501(c)(3) charitable organization and subsequently used to pay the premiums on an insurance policy on David's life that was owned by a trust benefiting the Roark family.  MORE »

Martin Schwartz of Vehicles For Change has urged Treasury to issue guidance that would exempt vehicle donations to organizations that use the contributions to further their charitable mission.  MORE »

Ronald Field and Cynthia Lewin of Volunteers of America have urged Treasury to issue a temporary regulation activating the "direct furtherance" exemption in the new vehicle donation legislation and that the unrelated business income tax rules be adopted as the basis for those temporary regulations.  MORE »

The Sixth Circuit has upheld a Tax Court decision that the Lapham Foundation was a private foundation rather than a supporting organization because it failed the integral-part test of reg. section 1.509(a)-4(i)(3). This case is instructive for gift planners because of other integrated planned giving elements.  MORE »

New vehicle donation rules will take effect on January 1, 2005. Jamie Sutton of Vehicle Donation to Any Charity has urged Treasury to publish immediate guidance on the "direct furtherance" exception and its application to vehicle sale business activities that "contribute importantly" to accomplishing an organization's exempt purpose.  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 2004-106 indicates the charitable federal midterm rate under section 7520 for December 2004 is 4.2%; unchanged from the November rate of 4.2% and down 0.2% from the October rate of 4.4%.  MORE »

The IRS has announced the optional standard mileage rates used in computing the deductible costs paid or incurred on or after January 1, 2005, for operating an automobile for business, charitable, medical, or moving purposes. The rate for the business use of an automobile is 40.5 cents per mile, up from 37.5 cents per mile. The rate for the charitable use of an automobile remains at 14 cents per mile, while the rate for using an automobile for medical or moving purposes is 15 cents per mile, up from 14 cents per mile.  MORE »

The Justice Department has filed a complaint in U.S. district court against Xelan Inc., in which it alleges that Xelan and others allegedly sold abusive tax shelters to thousands of medical professionals. In one alleged fraudulent scheme, the defendants operate the Xelan Foundation as a donor-directed fund. The Foundation purportedly allows doctors to make tax-deductible donations, and then direct those donations to pay for the college tuition of the doctors' children (either as an outright payment to the college or university, or as a purported loan to the donor's child), or to pay the doctors for doing charitable, "pro bono," work.  MORE »

A California District Court has issued a temporary restraining order to freeze more than $500 million in bank and investment accounts of Xelan Inc., a firm allegedly running fraudulent insurance and charity schemes mainly for clients in the medical profession, according to a November 4 Justice Department release.  MORE »