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Unformatted text preview: If you recall, you could divide up the ownership of your property in that way. Often times, a donor will retain a life interest in property and give the remainder (the balance) of the property at death. If this is done irrevocably during the donor’s lifetime, a value can be assigned to the expected remainder interest and the donor can then take an immediate income tax deduction for the amount of that value! Yet nothing has changed regarding his present right to use the property (only that he cannot now give it to anyone else that is not a charity). All of this would be pretty simple if the IRS did not come out with crazy limitations on how much could be deducted in one year. Sometimes 50%, sometimes 30% limited by other things. The rules are all in the text. The neat thing about learning all of this is that it does create a door-opener for you to use in talking with your local church and/or other charitable institutions. They all need money!...
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- Spring '10
- Accounting, Taxation in the United States, Income tax deduction, gift/estate tax savings