The Tax Law of Charitable Giving E-Book

Bruce R. Hopkins

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Serie: Wiley Nonprofit Authority
• Sprache: Englisch
• Veröffentlichungsjahr: 2014

Seitenzahl: 1946

Beschreibung

A completely updated guide to the laws and regulations governing charitable giving This fully updated Fifth Edition of The Tax Law of Charitable Giving is the definitive resource for nonprofit lawyers, accountants, and fundraising professionals charged with navigating the increasingly complex maze of charitable giving regulations. This new edition includes: * Detailed documentation and citations, including references to regulations, rulings, cases, and tax literature * An exhaustive index allowing for quick and easy reference * Annual supplements to keep readers apprised of the latest developments affecting tax-exempt healthcare organizations

Leseprobe

CONTENTS

Cover

Don't Miss Out on Must-Have and Timely New Information!

Title Page

Copyright

Dedication

Preface

Book Citations

Part One: Introduction to the Tax Law of Charitable Giving

Chapter One: Charitable Giving Law: Basic Concepts

§ 1.1 Introduction to the Charitable Contribution Deduction

§ 1.2 Defining Tax-Exempt Organizations

§ 1.3 Principles of Charitable Organizations Law Philosophy

§ 1.4 Statistical Profile of Charitable Sector

§ 1.5 Categories of Tax-Exempt Organizations

Chapter Two: The United States Tax System: An Overview

§ 2.1 Concept of Income

§ 2.2 Gross Income

§ 2.3 Exclusions from Income

§ 2.4 Concept of Adjusted Gross Income

§ 2.5 Deductions

§ 2.6 Standard Deduction

§ 2.7 Concept of Taxable Income

§ 2.8 Taxable and Nontaxable Entities

§ 2.9 Annual Accounting Period

§ 2.10 Accounting Methods

§ 2.11 Timing

§ 2.12 Property

§ 2.13 Inventory

§ 2.14 Gain

§ 2.15 Taxation of Income

§ 2.16 Capital Assets, Gains, and Losses

§ 2.17 Carryovers and Carrybacks

§ 2.18 Alternative Minimum Tax

§ 2.19 Depreciation

§ 2.20 Capital Gains and Losses Rates

§ 2.21 Taxation of Corporate Distributions

§ 2.22 Accumulated Earnings and Personal Holding Company Taxes

§ 2.23 Tax Credits

§ 2.24 Foreign Tax Credits

§ 2.25 Federal Tax Law Definition of Marriage

Part Two: Basics of Charitable Giving Law

Chapter Three: Fundamental Concepts

§ 3.1 Meaning of Gift

§ 3.2 Meaning of Donor

§ 3.3 Meaning of Charitable Organization

§ 3.4 Public Charities and Private Foundations

§ 3.5 Unrelated Business Rules

§ 3.6 Factors Affecting Income Tax Deductibility of Charitable Gifts

§ 3.7 Charitable Organizations Listing Reliance Rules

§ 3.8 Grantor Trust Rules

Chapter Four: Gifts of Money and Property

§ 4.1 Gifts of Money

§ 4.2 Gifts of Property in General

§ 4.3 Gifts of Long-Term Capital Gain Property in General

§ 4.4 Gifts of Ordinary Income Property

§ 4.5 Certain Gifts of Capital Gain Property

§ 4.6 Gifts of Property for Unrelated USE

§ 4.7 Variations in Applying Property Rules

§ 4.8 Step Transaction Doctrine

§ 4.9 Charitable Pledges

Chapter Five: Fundamentals of Planned Giving

§ 5.1 Introduction

§ 5.2 Appreciated Property Gifts

§ 5.3 Planned Gifts: Core Concepts

§ 5.4 Charitable Remainder Trusts

§ 5.5 Pooled Income Funds

§ 5.6 Charitable Gift Annuities

§ 5.7 Charitable Lead Trusts

§ 5.8 Planned Giving: Other Forms

§ 5.9 Planned Giving and Securities Laws

Part Three: Charitable Giving in General

Chapter Six: Timing of Charitable Deductions

§ 6.1 Gifts of Money in General

§ 6.2 Gifts of Money by Check

§ 6.3 Gifts of Money by Credit Card

§ 6.4 Gifts of Money by Telephone

§ 6.5 Gifts of Securities

§ 6.6 Gifts of Copyright Interest

§ 6.7 Gifts by Means of Notes

§ 6.8 Gifts by Letters of Credit

§ 6.9 Gifts of Property Subject to Option

§ 6.10 Gifts of Stock Options

§ 6.11 Gifts of Credit Card Rebates

§ 6.12 Gifts of Tangible Personal Property

§ 6.13 Gifts of Real Property

§ 6.14 Gifts by C Corporations

§ 6.15 Gifts by S Corporations

§ 6.16 Gifts by Partnerships

§ 6.17 Gifts by Means of Internet

Chapter Seven: Percentage Limitations

§ 7.1 Introduction

§ 7.2 Individual's Contribution Base

§ 7.3 Corporation's Taxable Income

§ 7.4 Percentage Limitations: An Overview

§ 7.5 Fifty Percent Limitation

§ 7.6 Thirty Percent Limitation for Gifts of Certain Property

§ 7.7 Electable 50 Percent Limitation

§ 7.8 General 30 Percent Limitation

§ 7.9 Interplay of 50 Percent/Special 30 Percent Limitations

§ 7.10 Interplay of 50 Percent/General 30 Percent Limitations

§ 7.11 Interplay of Special 30 Percent/General 30 Percent Limitations

§ 7.12 Twenty Percent Limitation

§ 7.13 Gifts for the Use of Charity

§ 7.14 Blending Percentage Limitations

§ 7.15 Individuals' Net Operating Loss Carryovers and Carrybacks

§ 7.16 Rules for Spouses

§ 7.17 Information Requirements

§ 7.18 Percentage Limitation for Corporations

§ 7.19 Corporations' Net Operating Loss Carryovers and Carrybacks

Chapter Eight: Estate and Gift Tax Considerations

§ 8.1 Introduction

§ 8.2 Federal Gift Tax

§ 8.3 Federal Estate Tax

§ 8.4 Unification of Taxes

§ 8.5 Generation-Skipping Transfer Tax

§ 8.6 Remainder Interests

§ 8.7 Ascertainability

Chapter Nine: Special Gift Situations

§ 9.1 Works of Art

§ 9.2 Gems

§ 9.3 Inventory

§ 9.4 Scientific Research Property

§ 9.5 Computer Technology or Equipment

§ 9.6 License to Use Patent

§ 9.7 Conservation Property

§ 9.8 S Corporation Stock311

§ 9.9 Section 306 Stock

§ 9.10 Retirement Plan Accounts376

§ 9.11 Commodity Futures Contracts

§ 9.12 Donors' Creations

§ 9.13 Charity Auctions

§ 9.14 Services

§ 9.15 Unreimbursed Expenses

§ 9.16 Limitation on Deduction for Expenses Due to Pleasure

§ 9.17 Automobile Expenses

§ 9.18 Use of Property

§ 9.19 Bargain Sales

§ 9.20 Property Subject to Debt

§ 9.21 Future Interests in Tangible Personal Property

§ 9.22 Contributions by Trusts

§ 9.23 Partial Interests

§ 9.24 Taxidermy

§ 9.25 Clothing and Household Items

§ 9.26 Charitable Family Limited Partnerships

§ 9.27 Motor and Other Vehicles

§ 9.28 Intellectual Property

§ 9.29 Foreign Tax Credit

§ 9.30 Subsistence Whaling Expenses

§ 9.31 Public Policy Considerations

Chapter Ten: Other Aspects of Deductible Giving

§ 10.1 Valuation of Property

§ 10.2 Contributions by Means of an Agent

§ 10.3 Gifts for the Use of Charity

§ 10.4 Conditional Gifts

§ 10.5 Earmarking of Gifts for Individuals

§ 10.6 Alternative Minimum Tax Considerations

§ 10.7 Interrelationship with Business Expense Deduction

§ 10.8 Denial of Deduction for Lobbying Activities

§ 10.9 Deductible Gifts to Noncharitable Organizations

§ 10.10 Reallocation of Deductions

§ 10.11 Charitable Giving and Funding of Terrorism

§ 10.12 Statute of Limitations

§ 10.13 Concept of Trust Income

§ 10.14 Penalties

§ 10.15 Transactions of Interest

Part Four: Planned Giving

Chapter Eleven: Valuation of Partial Interests

§ 11.1 Overview of Statutory Law

§ 11.2 Standard Actuarial Factors

§ 11.3 General Actuarial Valuations

§ 11.4 Nonstandard Actuarial Factors

Chapter Twelve: Charitable Remainder Trusts

§ 12.1 Definitions

§ 12.2 Charitable Remainder Annuity Trust Rules

§ 12.3 Charitable Remainder Unitrust Rules

§ 12.4 Issues

§ 12.5 Tax Treatment of Distributions

§ 12.6 Division of Charitable Remainder Trusts

§ 12.7 Early Terminations of Charitable Remainder Trusts

§ 12.8 Taxation of Charitable Remainder Trusts

§ 12.9 Mandatory Provisions

§ 12.10 Private Foundation Rules

§ 12.11 Wealth Replacement Trusts

§ 12.12 Calculation of Charitable Deduction

Chapter Thirteen: Pooled Income Funds

§ 13.1 Definitions

§ 13.2 Qualifying Pooled Income Funds

§ 13.3 Allocation of Income

§ 13.4 Recognition of Gain or Loss on Transfers

§ 13.5 Mandatory Provisions

§ 13.6 Private Foundation Rules

§ 13.7 Pass-Through of Depreciation

§ 13.8 Tax Status of Fund and Beneficiaries

§ 13.9 Multiorganization Pooled Income Funds

§ 13.10 Comparison with Charitable Remainder Trusts

§ 13.11 Charitable Contribution Deduction

Chapter Fourteen: Charitable Gift Annuities

§ 14.1 Contract as Vehicle Form

§ 14.2 Tax Treatment to Donor

§ 14.3 Deferred Payment Gift Annuities

§ 14.4 Estate and Gift Tax Consequences

§ 14.5 Unrelated Business Income Implications

§ 14.6 Unrelated Debt-Financed Income Implications

§ 14.7 Contrast with Other Planned Gift Methods

§ 14.8 Gift Annuities and Antitrust Laws

§ 14.9 Gift Annuities and Securities Laws

§ 14.10 Charitable Contribution Deduction

Chapter Fifteen: Other Gifts of Remainder Interests

§ 15.1 Overview

§ 15.2 Contributions of Remainder Interests in Personal Residence or Farm

§ 15.3 Undivided Portions of Entire Interests in Property

Chapter Sixteen: Charitable Lead Trusts

§ 16.1 General Rules

§ 16.2 Income Interest

§ 16.3 Income Tax Charitable Deduction

§ 16.4 Tax Treatment of Charitable Lead Trusts

§ 16.5 Testamentary Use of Charitable Lead Trusts

§ 16.6 Percentage Limitation Rules

§ 16.7 Private Foundation Rules

§ 16.8 Anti-Abuse Rule Concerning Income Interests

§ 16.9 Charitable Income Trusts

§ 16.10 Comparison with Charitable Remainder Trusts

§ 16.11 Valuing Charitable Deduction

Chapter Seventeen: Gifts of and Using Life Insurance

§ 17.1 Introduction

§ 17.2 Life Insurance Concepts

§ 17.3 Charitable Giving and Insurance

§ 17.4 Insurable Interest

§ 17.5 Unrelated Debt-Financed Income Considerations

§ 17.6 Charitable Split-Dollar Insurance Plans

§ 17.7 Applicable Insurance Contract Reporting Requirements

Part Five: International Charitable Giving

Chapter Eighteen: International Giving by Individuals During Lifetime

§ 18.1 Introduction

§ 18.2 Background

§ 18.3 Earmarking and Conduit Restrictions

§ 18.4 Control Over Foreign Donees

§ 18.5 Summary

§ 18.6 Income Tax Treaties

Chapter Nineteen: International Giving by Individuals Through Estates

§ 19.1 Introduction

§ 19.2 Estate Tax Rules

§ 19.3 Gift Tax Rules

§ 19.4 Charitable Giving by Noncitizen Nonresidents

Chapter Twenty: International Giving by Corporations

§ 20.1 Corporate Gifts to U.S. Charity for Overseas Use

§ 20.2 Gifts of Money from Foreign Affiliate of U.S. Parent to Overseas Charity

§ 20.3 Gift of Goods or Services to Benefit Foreign Charity

§ 20.4 Grants of Funds from U.S. Corporation–Related Foundation to Foreign Charity

Part Six: Administration of Charitable Giving Programs

Chapter Twenty - One: Substantiation and Appraisal Requirements

§ 21.1 Introduction

§ 21.2 Substantiation Requirements for Gifts of Money

§ 21.3 Substantiation Requirements for Gifts of $250 or More

§ 21.4 Substantiation Requirements for Noncash Gifts

§ 21.5 Appraisal Requirements

§ 21.6 Appraisals and Penalties

§ 21.7 Appraisals of Clothing and Household Items

§ 21.8 Burden of Proof Rules

Chapter Twenty - Two: Disclosure Requirements

§ 22.1 Disclosure by Charitable Organizations in General

§ 22.2 Quid Pro Quo Contribution Rules

§ 22.3 Disclosure by Noncharitable Organizations

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

§ 23.1 IRS Audit Guidelines

§ 23.2 Special Events

§ 23.3 Corporate Sponsorship Rules

§ 23.4 Donor-Advised Funds

Chapter Twenty - Four: Reporting Requirements

§ 24.1 Gift Reporting by Individuals

§ 24.2 Gift Reporting by C Corporations

§ 24.3 Gift Reporting by S Corporations

§ 24.4 Gift Reporting by Partnerships

§ 24.5 Gift Reporting by Donees in General

§ 24.6 Gift Reporting in Unrelated Business Context

§ 24.7 Reporting of Noncash Gifts in General

§ 24.8 Reporting of Gifts of Vehicles

§ 24.9 Reporting of Gifts of Intellectual Property

§ 24.10 Reporting on Dispositions of Contributed Property

§ 24.11 Personal Benefit Contract Reporting Requirements

§ 24.12 Split-Interest Trust Filing Requirements

Chapter Twenty - Five: State Fundraising Regulation

§ 25.1 State Regulation in General

§ 25.2 Historical Perspective

§ 25.3 States' Police Power

§ 25.4 Basic Definitions

§ 25.5 Registration Requirements

§ 25.6 Reporting Requirements

§ 25.7 Exemptions from Regulation

§ 25.8 Fundraising Cost Limitations

§ 25.9 Prohibited Acts

§ 25.10 Contractual Requirements

§ 25.11 Disclosure Requirements

About the Author

About the Online Resources

Index

End User License Agreement

Guide

Cover

Table of Contents

Preface

Part One

Chapter One

Pages

ii

iii

iv

v

xv

xvi

xvii

xviii

xix

xx

xxi

xxii

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

46

47

48

49

50

51

52

53

54

55

56

57

58

59

60

61

62

63

64

65

66

67

68

69

70

71

72

73

74

75

76

77

78

79

80

81

82

83

84

85

86

87

88

89

90

91

92

93

94

95

96

97

98

99

100

101

102

103

104

105

106

107

108

109

110

111

112

113

114

115

116

117

118

119

120

121

122

123

124

125

126

127

128

129

130

131

132

133

134

135

136

137

138

139

140

141

142

143

144

145

146

147

148

149

150

151

152

153

154

155

156

157

158

159

160

161

162

163

164

165

166

167

168

169

170

171

172

173

174

175

176

177

178

179

180

181

182

183

184

185

186

187

188

189

190

191

192

193

194

195

196

197

198

199

200

201

202

203

204

205

206

207

208

209

210

211

212

213

214

215

216

217

218

219

220

221

222

223

224

225

226

227

228

229

230

231

232

233

234

235

236

237

238

239

240

241

242

243

244

245

246

247

248

249

250

251

252

253

254

255

256

257

258

259

260

261

262

263

264

265

266

267

268

269

270

271

272

273

274

275

276

277

278

279

280

281

282

283

284

285

286

287

288

289

290

291

292

293

294

295

296

297

298

299

300

301

302

303

304

305

306

307

308

309

310

311

312

313

314

315

316

317

318

319

320

321

322

323

324

325

326

327

328

329

330

331

332

333

334

335

336

337

338

339

340

341

342

343

344

345

346

347

348

349

350

351

352

353

354

355

356

357

358

359

360

361

362

363

364

365

366

367

368

369

370

371

372

373

374

375

376

377

378

379

380

381

382

383

384

385

386

387

388

389

390

391

392

393

394

395

396

397

398

399

400

401

402

403

404

405

406

407

408

409

410

411

412

413

414

415

416

417

418

419

420

421

422

423

424

425

426

427

428

429

430

431

432

433

434

435

436

437

438

439

440

441

442

443

444

445

446

447

448

449

450

451

452

453

454

455

456

457

458

459

460

461

462

463

464

465

466

467

468

469

470

471

472

473

474

475

476

477

478

479

480

481

482

483

484

485

486

487

488

489

490

491

492

493

494

495

496

497

498

499

500

501

502

503

504

505

506

507

508

509

510

511

512

513

514

515

516

517

518

519

520

521

522

523

524

525

526

527

528

529

530

531

532

533

534

535

536

537

538

539

540

541

542

543

544

545

546

547

548

549

550

551

552

553

554

555

556

557

558

559

560

561

562

563

564

565

566

567

568

569

570

571

572

573

574

575

576

577

578

579

580

581

582

583

584

585

586

587

588

589

590

591

592

593

594

595

596

597

598

599

600

601

602

603

604

605

606

607

608

609

610

611

612

613

614

615

616

617

618

619

620

621

622

623

624

625

626

627

628

629

630

631

632

633

634

635

636

637

638

639

640

641

642

643

644

645

646

647

648

649

650

651

652

653

654

655

656

657

658

659

660

661

662

663

664

665

666

667

668

669

670

671

672

673

674

675

676

677

678

679

680

681

682

683

684

685

686

687

688

689

690

691

692

693

694

695

696

697

698

699

700

701

702

703

704

705

706

707

708

709

710

711

712

713

714

715

716

717

718

719

720

721

722

723

724

725

726

727

728

729

730

731

732

733

734

735

736

737

738

739

740

741

742

743

744

745

746

747

748

749

750

751

752

753

754

755

756

757

758

759

760

761

762

763

764

765

766

767

768

769

770

771

772

773

774

775

776

777

778

779

780

781

782

783

784

785

786

787

788

789

790

791

792

793

794

795

796

797

798

799

800

801

802

803

804

805

806

807

808

809

810

811

812

813

814

815

816

817

818

819

820

821

822

823

824

825

826

827

828

829

830

831

832

833

834

835

836

837

838

839

840

841

842

843

844

845

846

847

848

849

850

851

852

853

854

855

856

857

858

859

860

861

862

863

864

865

866

867

868

869

870

871

872

873

874

875

876

877

878

879

880

881

882

883

884

885

886

887

888

889

890

891

892

893

894

895

896

897

898

899

900

901

902

903

904

905

906

Don't Miss Out on Must-Have and Timely New Information!

Learn about new federal laws surrounding charitable giving.

Keep up-to-date on relevant changes in IRS forms, requirements, and related tax procedures.

Stay abreast of complicated legal and tax issues in the realm of charitable giving.

Subscribe now to make sure you have access to the latest information regarding tax regulations pertaining to charitable giving.

Go to

www.nonprofitcommunity.com/index.php/nonprofit-accounting-finance/

and sign up today!

The Tax Law of Charitable Giving

Fifth Edition

Bruce R. Hopkins

Cover image: © iStockphoto.com/Trifonov_Evgeniy

Cover design: Wiley

Copyright © 2014 by Bruce R. Hopkins. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, [phone], fax [phone], or on the Web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, [phone], fax [phone], or online at http://www.wiley.com/go/permissions.

Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

For general information on our other products and services or for technical support, please contact our Customer Care Department within the United States at [phone], outside the United States at [phone] or fax [phone].

Wiley publishes in a variety of print and electronic formats and by print-on-demand. Some material included with standard print versions of this book may not be included in e-books or in print-on-demand. If this book refers to media such as a CD or DVD that is not included in the version you purchased, you may download this material at http://booksupport.wiley.com. For more information about Wiley products, visit www.wiley.com.

ISBN 978-1-118-76803-7 (cloth)

ISBN 978-1-118-76766-5 (ebk)

ISBN 978-1-118-76772-6 (ebk)