As its name implies, a bargain sale occurs when a donor, who intends to make a charitable contribution, sells property to charity for less than its fair market value. This memorandum reviews the various types of bargain sales, the technical requirements for qualification, taxation of bargain sales, computation of charitable contribution deductions, and the application of the bargain sale rules to various types of planned giving vehicles.  MORE »

A charitable gift annuity is described generally as a transaction in which an individual transfers cash or property to a charitable organization in exchange for the charity's promise to make fixed annuity payments to one or two life annuitants. This comprehensive report discusses the origin of gift annuities, how they are designed and regulated, how charitable contribution deductions are determined, taxation of distributions to annuitants, taxation of gift annuities to issuing organizations, and creative planning opportunities for donors.

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Charitable lead trusts ("CLTs") are designed to provide income payments to at least one qualified charitable organization for a period measured by a fixed term of years, the lives of one or more individuals, or a combination of the two; after which, trust assets are paid to either the grantor or to one or more noncharitable beneficiaries named in the trust instrument. This comprehensive paper provides a complete technical overview of charitable lead trusts; how charitable deductions are determined for income, gift, estate and generation-skipping transfer tax purposes; the taxation of charitable lead trusts; income tax considerations for grantors and beneficiaries; and private foundation excise tax rules.  MORE »

A charitable remainder trust is a trust that provides for a specified distribution, at least annually, to at least one noncharitable income recipient for a period specified in the trust instrument, with the remainder interest paid to at least one charitable beneficiary. This 285-page, fully annotated text, by Marc D. Hoffman, provides a complete technical overview of CRTs, charitable contribution deductions, transfer tax considerations, operational and investment considerations, and cash Flow planning.  MORE »

Reviews the estate tax charitable deduction, qualifying recipients, conditions and limitations, qualifying partial interests, and reformation rules.  MORE »

Examines the types of gifts that are deductible, how to determine the donor's allowable charitable income tax deduction, percentage limitation and reduction rules, substantiating deductions and compliance penalties.

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Intangible personal property is property that has no intrinsic value but is merely representative or evidence of value. Common examples include securities (both public and private), copyrights, royalties, patents, personal service contracts, installment obligations, life insurance and annuity contracts, and partnership interests. This memorandum examines the most common types and forms of intangible personal property that are considered for contribution to charity, and the special rules that apply to charitable deductions for income, gift, and estate tax purposes.  MORE »

Qualified retirement plans and individual retirement accounts are trusts or custodial accounts that hold a person's tax deferred retirement assets. Their principal tax advantage is income tax deferral. They include IRC Sec. 401(a) Qualified Retirement Plans (profit sharing, ESOP, 401(K) and "Keogh" plans); Sec. 408 (IRAs, SEPs and SIMPLE Plans) and Sec. 403(b) (tax sheltered annuities and custodial accounts). This memorandum discusses the income and estate tax economics of lifetime and testamentary charitable and noncharitable transfers of retirement plan assets, along with guidelines planners should consider in structuring such transfers.  MORE »

A gift of a remainder interest in a personal residence or farm is described generally as a transaction in which an individual irrevocably transfers title to a personal residence or farm to a charitable organization with a retained right to the use of the property for a term that is specified in the gift agreement. At the conclusion of the measuring term, all rights in the property are transferred to the charitable remainderman. This memorandum reviews the income, gift, and estate tax consequences surrounding life estate agreements and the practical issues surrounding their creative use and implementation.

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This comprehensive paper provides a complete overview of pooled income funds, qualification requirements, income tax deduction rules, taxation of the fund and distributions, gift and estate tax consequences, and application of private foundation excise taxes.  MORE »

Privately-held business forms include sole proprietorships, general and limited partnerships, C-corporations, S-corporations, and recently created limited liability companies. In the context of charitable gift planning, the diversity of business forms and the rules that apply to each regarding taxation, ownership, transferability, liquidity, marketability, and income producing capability place them, as a category, at the pinnacle of complexity. This memorandum focuses on outright transfers of privately-held business interests to public charities and private foundations, as well as transfers to charitable remainder trusts and charitable lead trusts.

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Publicly traded securities are the most common form of noncash charitable gift asset. This paper reviews various types of publicly traded securities, discusses their suitability as a charitable gift assets and the unique rules that may apply to their transfer, reviews the rules concerning valuation for charitable contribution deduction purposes, and what constitutes delivery for federal tax purposes.  MORE »

Contributions of real property represent one of the most complicated yet rewarding opportunities in charitable gift planning. This discussion reviews various types of real property, how it is owned, income tax considerations regarding transfers to charity, factors limiting transfer, and its compatibility with various types of split interest gift planning vehicles.  MORE »

Because of its nearly infinite variety, tangible personal property is one of the most interesting types of property contributed to charity. This text defines tangible personal property, reviews the income tax rules associated with its transfer, discusses its compatibility with various planned giving vehicles, and provides guidance for its ownership and disposition.  MORE »

Provides access to IRS Publication 561 - Determining the Value of Donated Property.  MORE »