Endownow.Org
Mon
18
Jan
2010

Text of Bill to Allow 2009 Charitable Deductions for Gifts for Haitian Relief

 »  

No votes yet

House Ways and Means Committee Chair Charles B. Rangel, D-N.Y. has introduced legislation to accelerate the income tax benefits for cash charitable contributions made after January 11, 2010, and before March 1, 2010 for the relief of victims of the earthquake in Haiti.

Full Text:
_____________
(Original Signature of Member)

111TH CONGRESS
2D SESSION

H. R. _____

To accelerate the income tax benefits for charitable cash
contributions for the relief of victims of the earthquake in Haiti.

IN THE HOUSE OF REPRESENTATIVES

Mr. RANGEL (for himself and Mr. CAMP) introduced the following bill; which was referred to the Committee on

A BILL

To accelerate the income tax benefits for charitable cash contributions for the relief of victims of the earthquake in Haiti.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. ACCELERATION OF INCOME TAX BENEFITS FOR CHARITABLE CASH CONTRIBUTIONS FOR RELIEF OF VICTIMS OF EARTHQUAKE IN HAITI.

(a) IN GENERAL. -- For purposes of section 170 of the Internal Revenue Code of 1986, a taxpayer may treat any contribution described in subsection (b) made after January 11, 2010, and before March 1, 2010, as if such contribution was made on December 31, 2009, and not in 2010.

(b) CONTRIBUTION DESCRIBED. -- A contribution is described in this subsection if such contribution is a cash contribution made for the relief of victims in areas affected by the earthquake in Haiti on January 12, 2010, for which a charitable contribution deduction is allowable under section 170 of the Internal Revenue Code of 1986.

Comments

Thu
21
Jan
2010
24
points
#01 by Keith Miles    

Any idea how the IRS will

Any idea how the IRS will define "relief"? Will it be limited to gifts to be used to purchase supplies, food, water, medicine, shelter, etc., or could the gifts also be used for travel costs for volunteers traveling to Haiti to assist with rescue and clean-up operations?

Fri
22
Jan
2010
23
points
#02 by Keith Miles    

Definition of "Relief"

This bill allows 2009 deductions for gifts given "for the relief" of Haitian earthquake victims. How is relief defined? Would gifts to a charity to cover travel costs of a team going to Haiti to assist with medical treatment, clean-up, etc. qualify? Or, is it just for gifts going to purchase supplies, medicine, etc. (and transportation of supplies)?

Tue
02
Feb
2010
20
points
#02.00 by Marc Hoffman    

Deducting Out of Pocket Expenses in Giving Services

Although this should not be construed as legal, tax or accounting advice, I believe the operative language in the bill is "for which a charitable contribution deduction is allowable under section 170." Since certain out of pocket expenses, in this case paid in cash, made to or for the use of a qualified organization are deductible under section 170 subject to the percentage limitations under 170(b), I would argue that cash out-of-pocket expenses for relief purposes should be deductible. For further information, see IRS Pub. 526, page 5 for Out of Pocket Expenses in Giving Services: http://www.irs.gov/pub/irs-pdf/p526.pdf

Pub. 526 states that unreimbursed expenses must be directly connected with the services, incurred only because of the services you gave, and are not personal, living or family expenses. Again, this is only my personal opinion. Seek the advice of qualified counsel.

RSS Comment Feed