Charitable Giving Information

Posts Tagged ‘Charitable’

Car Donations Irs

Question: Can someone clarify car donations to charity in IRS terms?

I work for the YMCA and we are trying to figure out how to handle selling donated cars within the guidelines of the IRS.

Answer: The charity must tell the donor what the car sold for and the donor can deduct that amount.

Car donation CT Connecticut=Huge IRS warning!

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Charitable Giving Ira

Under the Pension Protection Act of 2006, there are some new items beneficial to IRA owners that the average IRA owner will miss:

First, if you leave your employer and you had a tax sheltered annuity (typically the type of plan at school districts and governments), you can roll both the pre-tax and after-tax amounts to an IRA. That way, the whole account can continue to grow tax deferred.

Next, the silly requirement to first roll your company account into a regular IRA and then into a Roth IRA has been dropped. Under the new rule, when you retiree, you can roll your company account directly into a Roth IRA (of course, you pay the income tax due and then the Roth will grow tax free). This is effective January 1, 2008.

The nonsensical prior rule that a non-spouse beneficiary of a company plan could not roll over the money had been dropped. Here’s an example. Dad worked for Chevron. He listed his son as beneficiary on his 401k. If Dad dies, the son can now do a trustee-to trustee transfer of Dad’s account into an inherited IRA. Previously, only a spouse could move money from a deceased’s 401k into an inherited IRA or their own IRA. The non-spouse beneficiary still cannot take possession of the money or else it will be taxed—there is no 60 day rollover provision.

There’s more good news about the above. Let’s say Dad died in 2003 and the son was subject to the 5 year rule which required that the IRA be emptied by 2008. Now, the son can just do the rollover in 2007 (the rule is effective January 1, 2007) and take advantage of the new rule even though Dad dies a while back.

If you’re charitably inclined, it has always made sense to give IRA funds or retirement finds to charity. Since each dollar in a retirement plan is only worth 65 cents (after an assumed 35 cent tax), it’s always made sense to give retirement funds rather than non-retirement funds to charity. Previously, if you wanted to give a lifetime gift of your IRA funds, you needed to include the distribution from your IRA on your tax return and then show a charitable deduction. For limitation reasons, this was not always favorable.

Now, you can distribute up to $100,000 directly to a public charity and not show it on your tax return, provided you are also past age 70 ½ (this does not apply to transfers to foundations, donor advised accounts or charitable remainder trusts—only outright gifts to public charities). You would not show the IRA distribution or the charitable deduction.

This is really a rule for seniors because you must be age 70 ½ to use it and it helps people, typically seniors, that have the following issues/limitations: helps people who could not previously make full immediate use of the charitable deduction because of the 50% of AGI limitation, those who paid tax on social security income, those who had a limit on their itemized deductions and those that did not itemize deductions.

The best news is that these transfers to charity count toward the taxpayer’s required mandatory distribution. One more good thing—these transfers to charity are exempt from the normal “pro-rata” rule. Therefore, if the taxpayer has after—tax funds in their IRA, the transfers to charity are only from pre-tax funds and will not affect basis in the IRA. Beware, this rule is immediately effective and set to expire at the end of 2007!

Last, good for seniors, starting in 2010, the $100,000 MAGI limitation on Roth conversion is repealed. Therefore, retirees, for whom Roth conversions are most appealing, will be able to do a Roth conversion without limitation and also spread the tax so that half is paid in 2011 and half in 2012.

You can get a complete education when you attend the Advanced IRA Rollover and Distribution Training in Orlando. Details at www.iraexpert.net

About the Author:

Larry Klein CPA/PFS, CFP, CRFA is co-creator of the Advanced IRA Rollover and Distribtion Training for financial advisors. Retiree Site.

Article Source: ArticlesBase.com – New Ira Rules Help Retirees And Seniors

Eric Swerdlin discusses charitable giving on Cavuto

Charitable Trusts For Education

Question: are there charitable trusts funding girl child s higher education?

am looking for financial help to educate my daughters. As the cost of same is very high need some help from individuals,trusts etc.

Answer: I don't know of charitable trusts, but there are good scholarships. My daughter went to Georgetown and they found her all the money from a combination of financial aid, work-study, etc. You can check www.fastweb.com for scholarships. You will probably have to work harder to find charitable trusts, but just do research and searches for charitable trusts and foundations. Many,like the MacArthur Foundation, are dedicated to education.

Vidya Vikas Charitable Trust

Charitable Trust Delhi

Question: What is the address of Sub-Registrar’s office for registering a charitable trust in Delhi?

I live in Gurgaon & Trust’s regd office will be in Gurgaon (DLF).

1) Can I register a charitable trust in Delhi.
2) If so, please send me the address of the office of Sub-Registrar of Trusts in Delhi.

Answer: It is in Patparganj. Go to site : delhigovt. com

KIRIT BHAIJI CHINUFILMS

Charitable Trust Foundation

Question: the health care bill you do understand insurance companies have been making laws for years right?

dui laws, seat belt laws, anti smoking laws, fatty food laws,. All these laws were paid for by the insurance companies to keep down over head. the insurance companies bought votes through campaign contributions and lobbiest firms headed by mad and the american lung association or the american medical association and with the government taking over this is gonna be twice as bad you do realize this? they are gonna use this to strip our rights and liberties away through cost saving measures. its like trading the mafia for the KGB. you people out here do see this right or are you still looking at the uninsured people as being more important than all our liberties?

side note: i hate repeat HATE the insurance companies but i do realize that this government should be trusted even less. they are the ones who took the pay day to vote away our liberties and lied to all of us for it.

Answer: The government isn't going to take over. I wish people would stop saying that it gets old after a while. I trust the doctors over tea party protesters. Most doctors are actually for this health care reform and even hold vigils for those suffering under the current health care system. 63% support President Obama's basic position on health care reform. Most doctors will say that the government isn't going to take over health care. I don't think 63% of the doctors in this country are bought off.

Royal Society Portrait Painters - Carroll Foundation Charitable Trust Case