Support our online development, and advance our onground research initiatives in free market economics, as we seek to showcase the brightest Next-Gen minds.
THE ME-P DISCLAIMER: Posts, comments and opinions do not necessarily represent iMBA, Inc., but become our property after submission. Copyright © 2006 to-date. iMBA, Inc allows colleges, universities, medical and financial professionals and related clinics, hospitals and non-profit healthcare organizations to distribute our proprietary essays, photos, videos, audios and other documents; etc. However, please review copyright and usage information for each individual asset before submission to us, and/or placement on your publication or web site. Attestation references, citations and/or back-links are required. All other assets are property of the individual copyright holder.
On IRS published IR-2011-18
By Children’s Home Society of Florida Foundation
On December 14, 2011, the IRS published IR-2011-18 and suggested a number of tax tips for end-of-year charitable giving. These included several specific recommendations.
1. IRA Rollover – For individuals age 70½ and older who are IRA owners, they may have their IRA custodian make a direct transfer to qualified charities of up to $100,000. These direct transfers may fulfill part or all of the required minimum distribution for this year.
2. Clothing and Household Goods – Deductions for gifts of clothing and household goods are permitted if they are in “good used condition or better.” A gift item that has a value over $500 may be of a different quality, provided that there is an appraisal.
3. Gifts of Money – All gifts of money must be documented through a bank record or receipt. The gift should show the date, amount of the gift and the name of the charitable organization. Bank records may include a cancelled check, a bank statement or a credit card statement. Gifts may also be made through payroll deductions. In this case, the taxpayer should retain a pay stub, Form W-2 or a pledge card that shows the amount, the date of the gift and the name of the charity. If the gift is $250 or more, a contemporaneous written acknowledgement from the charity is required. This receipt must be in the taxpayer’s possession on the date of filing his or her tax return.
4. Timing – A contribution is deductible in the year when it is given. Credit card contributions may be made through December 31st, 2011. Similarly, checks that are sent through U.S. mail by December 31 are deductible if they clear in the normal course.
5. Charities – Deductions are only permitted for gifts to qualified charities. IRS Publication 78 is available on http://www.irs.gov and lists the qualified charitable organizations.
6. Itemized Deductions – Individuals who wish to claim their charitable gifts will need to itemize deductions on Schedule A of Form 1040. Normally, a taxpayer will itemize only if his or her charitable gifts, state and local taxes, mortgage interest and other deductions are larger than the standard deduction.
7. Clothing and Household Item Receipts – The taxpayer should obtain a receipt from the charity. It must list the name of the charity, the date of the gift and a reasonably-detailed description of the gift items.
8. Boat, RV or Car – The gift is usually limited to the gross proceeds from sale if the vehicle is valued at over $500. The charity will send IRS Form 1098-C to the taxpayer and this should be attached to Form 1040.
Conclusion
Your thoughts and comments on this ME-P are appreciated. Feel free to review our top-left column, and top-right sidebar materials, links, URLs and related websites, too. Then, subscribe to the ME-P. It is fast, free and secure.
Link: http://feeds.feedburner.com/HealthcareFinancialsthePostForcxos
Speaker: If you need a moderator or speaker for an upcoming event, Dr. David E. Marcinko; MBA – Publisher-in-Chief of the Medical Executive-Post – is available for seminar or speaking engagements. Contact: MarcinkoAdvisors@msn.com
OUR OTHER PRINT BOOKS AND RELATED INFORMATION SOURCES:
DICTIONARIES: http://www.springerpub.com/Search/marcinko
PHYSICIANS: www.MedicalBusinessAdvisors.com
PRACTICES: www.BusinessofMedicalPractice.com
HOSPITALS: http://www.crcpress.com/product/isbn/9781466558731
CLINICS: http://www.crcpress.com/product/isbn/9781439879900
BLOG: www.MedicalExecutivePost.com
FINANCE: Financial Planning for Physicians and Advisors
INSURANCE: Risk Management and Insurance Strategies for Physicians and Advisors
Share this:
Filed under: Ethics, Retirement and Benefits, Taxation | Tagged: By Children's Home Society of Florida Foundation, charitable giving, charity, End of Year Giving Tips, Gifts of Money, IRA Rollover, IRS, IRS Form 1098-C, Itemized Deductions, Schedule A of Form 1040, Tax giving charity, W-2 |
The Leading Business Education Network for Doctors, Financial Advisors and Health Industry Consultants 
Charitable Deductions Protected under “Buffet Rule” Tax
In the State of the Union Address, the President suggested that there should be a 30% minimum tax for those with incomes over $1 million per year. This 30% minimum tax has been called the “Buffet Rule” tax after statements in support of this plan by businessman Warren Buffet.
This week, Sen. Sheldon Whitehouse (D-RI) introduced the Paying a Fair Share Act. This act creates a 30% tax rate on incomes over $2 million per year. For those with incomes from $1 million to $2 million, the tax is phased in.
Whitehouse stated, “As we continue working to restore our economy, it’s more important than ever to make sure all Americans are paying their fair share toward our nation’s success.” He suggested that upper-income taxpayers should pay a fair rate and that his tax will help “fix” potential unfairness in the system.
Fortunately for philanthropy, the act includes a “modified charitable contribution deduction.” For individuals who are subject to this higher minimum tax, their charitable itemized deductions will be adjusted upward so they save the same percentage of tax at the higher rate than they would have saved at their lower rate. In effect, the modified charitable contribution deduction is intended to protect the savings of their charitable gifts.
The Alliance for Charitable Reform (ACR) published a statement in support of this provision. ACR stated, “We appreciate the wide recognition that the charitable deduction is different from all other deductions in that it is an incentive for Americans to give away their money as compared to other deductions and credit incentives.” ACR is a group of volunteer nonprofit leaders who support philanthropic freedom and increased giving.
Editor’s Note: The inclusion of the modified charitable contribution deduction is very positive for philanthropy. While the proposals for taxing higher incomes may not be enacted this year, it is possible that one or more could be enacted in future years as the government attempts to address the deficit. It is a breakthrough for philanthropy that this bill recognizes the importance of charitable deductions and creates a separate category from all other types of itemized deductions. Hopefully, this principle will be followed in future legislation.
Source: Children’s Home Society of Florida Foundation
LikeLike
10 Things Financial Advisors Need to Know About Charitable Giving
Advisors consistently underestimate how important philanthropy is to their clients.
http://www.financial-planning.com/gallery/fp/ten-things-advisors-need-to-know-about-charitable-giving-2679716-1.html
Here’s what you need to know to avoid making the same mistakes, with doctors and other clients.
Yerby
LikeLike
TAX PLANNING TIP
The limitation for deductibility for (cash) charitable contributions at the individual taxpayer level is 50 percent. Therefore, it makes sense to generate charitable gifts at the individual, rather than the corporate level.
In most individual tax instances the income limitation will not be an issue. In the event contributions have already been made during the current year, the corporation can reclassify those contributions to the owner employee as compensation and the individual can take the entire deduction at the individual level.
Sloan
LikeLike
Another IRS Tip
This is an informative post.
I wanted to share this site PDFFiller, Inc which I find very useful in filling out IRS forms. It helped me fill out my tax forms easily and allows me to print, save, email, fax, share, send, to sign and/or even add pictures.
I was able to get the forms I need through: http://goo.gl/4IOsLO.
Paul Davidson
LikeLike