Location, Location, Location!

Marc Hoffman — Wed, 15 May 2013 20:16:12 +0000

Responding to a request for Chief Counsel Advice, the IRS has advised the location of a substantial portion of donated real property within the boundaries of a national park results in a restriction on the property's highest and best use as a mineral property, and that such a restriction is a factor affecting the fair market value of the property for charitable deduction purposes. Read more »

Rebirth of the Charitable Remainder Trust

Marc Hoffman — Thu, 09 May 2013 18:02:57 +0000

Charitable remainder trusts are back! This according to attorney and PGDC contributing author David Wheeler Newman of Mitchell, Silverberg & Knupp, LLP. Read on to see why CRTs are enjoying renewed popularity. Read more »

Tax Court Holds Charitable Remainder Trust and Other Trusts to be Shams

Marc Hoffman — Tue, 07 May 2013 21:37:40 +0000

The Tax Court has held that a series of trusts, which included a charitable remainder annuity trust, formed by a physician and his wife according to the instructions of a tax shelter promotor as part of complex construction to disguise or eliminate taxable earnings from the physician's business activities were created primarily for tax-avoidance purposes and, therefore, shams. The trusts are disregarded for federal tax purposes with the petitioners liable for taxes on underreported income, self-employment taxes and accuracy related penalties. Read more »

Corporate Donor Not Subject to Reduced Deduction on Donation of Section 1250 Property

Marc Hoffman — Tue, 07 May 2013 18:06:54 +0000

The IRS has ruled privately that if certain section 1250 property (depreciable real property) is contributed to one or more tax-exempt organizations by a corporate donor, the charitable deduction attributable to the value of that contribution will not be reduced by twenty percent of the accumulated depreciation of the section 1250 property under section 291(a)(1) of the Internal Revenue Code. Whereas section 291(a)(1) would be implicated in other types of dispositions, the Service clarified that a disposition by gift does not apply. Read more »

Bill Would Remove Charitable Deduction from Limitation on Itemized Deductions

Marc Hoffman — Wed, 01 May 2013 05:16:40 +0000

Rep. F. James Sensenbrenner Jr., R-WI, has introduced H.R. 1479, that would amend the Internal Revenue Code of 1986 to remove the deduction for charitable contributions from the overall limitation on itemized deductions. Read more »

Expenditures by Private Foundation for Mentorship Program Not Taxable

Marc Hoffman — Wed, 01 May 2013 04:03:21 +0000

The IRS has ruled privately that expenditures by a private foundation in connection with awarding educational mentorship grants will not be taxable to the foundation. Read more »

Conrad Teitell Comments on Recent Ruling on Gift of Undivided Interest in CRUT

Marc Hoffman — Wed, 01 May 2013 02:18:27 +0000

Last December, the IRS published Ltr. Rul. 201249002 in which it approved a couple's proposed contribution of an undivided interest in their payments from a charitable remainder unitrust and irrevocable designation of the remainder interest to the same charity, followed by a partial termination of the trust and distribution of a portion of the trust's corpus to charity. In this article from WealthManagement.com, Conrad Teitell, A.B., LL.B., LL.M. discusses this favorable ruling in detail along with eight key questions and his answers. Read more »

The Bargain Sale, and When to Use It

Marc Hoffman — Wed, 24 Apr 2013 16:55:36 +0000

The bargain sale is a useful but often under utilized planned giving vehicle. In this article, planned giving real estate advisor Dennis Bidwell shares his experience regarding when a bargain sale should be considered. Read more »

IRS Requests Comments on Form 1041 and related Schedules D, J, and K-1, U.S. Income Tax Return for Estates and Trusts

Marc Hoffman — Wed, 24 Apr 2013 07:12:14 +0000

The IRS has requested comments concerning Form 1041 and related Schedules D, J, and K-1, U.S. Income Tax Return for Estates and Trusts. Written comments should be received on or before June 24, 2013 to be assured of consideration. Read more »

IRS Requests Comments on Conservation Easements

Marc Hoffman — Tue, 23 Apr 2013 21:36:47 +0000

The IRS has requested public comments on information collections on conservation easements under regulation section 1.170A-14. Comments are due by June 11, 2013. Read more »