With all the tax discussion happening in Washington, there has been a lot of speculation on what changes would mean for charitable organizations and the donors that sustain them.
Thankfully, the overall impact of the American Taxpayer Relief Act of 2012 (ATRA) is kind to both charities and philanthropists.
The Texas Presbyterian Foundation has published an excellent summary of how ATRA affects charitable giving. Some of the highlights:
- Individuals who did not make an IRA gift in 2012 can do so during January of 2013, and still take credit for it on 2012 returns.
- If done in January 2013, the gift of cash from your December 2012 IRA distribution can convert into a 2012 IRA gift
- Marital portability and the $5 million (with indexed increases) applicable exclusion amount for gift and estate taxes are made permanent.
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