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The Tax Law of Charitable Giving, 2016 Cumulative Supplement, 5th Edition

The Tax Law of Charitable Giving, 2016 Cumulative Supplement, 5th Edition

Bruce R. Hopkins

ISBN: 978-1-119-23831-7

May 2016

162 pages

Description

The classic tax guide for charitable giving, updated and expanded for 2016

The Tax Law of Charitable Giving is the leading guide to the rules, regulations, and laws governing charitable gifts, written by one of the most trusted legal authorities on tax-exempt organizations. Completely revised, revamped, and updated for 2016, this invaluable guide provides plain-English explanations and supporting documentation to assist in the decision making process. This supplement includes discussion of the new healthcare tax on investment income of trusts and the impact on pooled income funds, updates to federal estate tax law, and case law on substantiation and appraisal requirements, as well as detailed coverage of new Department of Treasury regulations concerning recordkeeping, an update of law summary for donor-advised funds, and an updated summary of recent legislation's impact on the U.S. tax system. Supporting citations and documentation are provided, and references to rulings, regulations, cases, and tax literature are included throughout. The companion website features appendices, tables, IRS examination guidelines for charitable giving, and more, to help you stay fully up-to-date with the most current tax laws related to charitable giving.

Tax law changes continuously, and the rules surrounding charitable gifts are under increasing scrutiny. This book provides clear, easy-to-follow guidance on the latest updates to help ensure complete compliance and well-informed decision-making.

  • Get up to date on the most recent charitable gift regulations
  • Dig deep into healthcare tax, federal estate tax, donor-advised funds, and more
  • Gain access to downloadable tables, IRS guidelines, and other helpful documents
  • Make the right decisions about your organization's fund–development program

With comprehensive, authoritative guidance and the most current applicable laws, rules, and regulations, The Tax Law of Charitable Giving is an invaluable resource for any tax-exempt organization.

Preface ix

About the Author xi

Book Citations xiii

PART ONE INTRODUCTION TO THE TAX LAW OF CHARITABLE GIVING 1

Chapter One Charitable Giving Law: Basic Concepts 3

§ 1.4 Statistical Profile of Charitable Sector 3

Chapter Two The United States Tax System: An Overview 5

§ 2.5 Deductions 5

§ 2.6 Standard Deduction 6

§ 2.7 Concept of Taxable Income 6

§ 2.15 Taxation of Income 6

PART TWO BASICS OF CHARITABLE GIVING LAW 9

Chapter Three Fundamental Concepts 11

§ 3.1 Meaning of Gift 11

§ 3.2 Meaning of Donor 12

§ 3.4 Public Charities and Private Foundations 12

§ 3.6 Factors Affecting Income Tax Deductibility of Charitable Gifts 12

PART THREE CHARITABLE GIVING IN GENERAL 13

Chapter Six Timing of Charitable Deductions 15

§ 6.15 Gifts by S Corporations 15

Chapter Seven Percentage Limitations 17

§ 7.12A Qualified Conservation Contributions 17

§ 7.12B Conservation Gifts by Farmers and Ranchers 18

Chapter Eight Estate and Gift Tax Considerations 21

§ 8.2 Federal Gift Tax 21

Chapter Nine Special Gift Situations 23

§ 9.3 Inventory 23

§ 9.7 Conservation Property 24

Easements and Other Conservation Property 24

§ 9.10 Retirement Plan Accounts 30

§ 9.19 Bargain Sales 31

§ 9.22A Contributions by Estates 31

Chapter Ten Other Aspects of Deductible Giving 33

§ 10.1 Valuation of Property 34

§ 10.7 Interrelationship with Business Expense Deduction 35

§ 10.14 Penalties 36

§ 10.15 Transactions of Interest 38

PART FOUR PLANNED GIVING 39

Chapter Twelve Charitable Remainder Trusts 41

§ 12.4 Issues 41

§ 12.12 Calculation of Charitable Deduction 42

Chapter Thirteen Pooled Income Funds 45

§ 13.7 Pass-Through of Depreciation 45

Chapter Sixteen Charitable Lead Trusts 47

§ 16.7 Private Foundation Rules 47

PART FIVE INTERNATIONAL CHARITABLE GIVING 49

Chapter Eighteen International Giving by Individuals during Lifetime 51

PART SIX ADMINISTRATION OF CHARITABLE GIVING PROGRAMS 53

Chapter Twenty-One Substantiation and Appraisal Requirements 55

§ 21.3 Substantiation Requirements for Gifts of $250 or More 55

§ 21.4 Substantiation Requirements for Noncash Gifts 57

§ 21.5 Appraisal Requirements 58

§ 21.7 Appraisals of Clothing and Household Items 58

§ 21.8 Burden of Proof Rules 58

Chapter Twenty-Three Special Events, Corporate Sponsorships, and Donor-Advised Funds 59

§ 23.4 Donor-Advised Funds 59

PART SEVEN APPENDICES 61

Appendix H Monthly Federal Interest Rates Used in Valuing Partial Interests (IRC § 7520) 63

Appendix I Deemed Rates of Return for Transfers to New Pooled Income Funds 73

TABLES 75

Cumulative Table of Cases 76

Cumulative Table of IRS Revenue Rulings and Revenue Procedures 88

Cumulative Table of IRS Private Determinations Cited in Text 91

Cumulative Table of IRS Private Letter Rulings, Technical Advice Memoranda, and General Counsel Memoranda 95

Table of Cases Discussed in Bruce R. Hopkins’ Nonprofit Counsel 107

Cumulative Table of IRS Revenue Rulings Discussed in Bruce R. Hopkins’ Nonprofit Counsel 113

Cumulative Table of Private Letter Rulings and Technical Advice Memoranda Discussed in Bruce R. Hopkins’ Nonprofit Counsel 115

Table of Charitable Giving Law Tax Reform Proposals 117

Cumulative Index 125