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Unformatted text preview: ffective 2007).
the RESULT: Money placed in a church collection
plate or any unsubstantiated cash donations
will no longer provide a donor deduction
x Contributions of $250 or more requiring written
Contributions charity-provided substantiation remains in force.
Under $250, the above rule is effective in 2007.
46 Charitable Contribution Considerations Pension Protection Act of 2006
x Charitable Donations of Household Items and Clothing must
Charitable be in “good or better used condition” after August 17, 2006.
An exception exists for single appraised items not in good
condition if their value exceeds $500.
condition x Donations can be made directly out of both traditional and
Donations Roth IRAs if 70 & ½ or older and paid directly to the taxRoth
exempt charity. However, no deduction since the distribution
is not subject to income tax. Available for 2006 and 2007,
but limited to $100,000 in each year.
but x --Provision extended thru December 31, 2009 by
--Provision Tax Extenders and AMT Relief Act of 2008
Tax 47 Itemized Deductions
Three Percent Cut-Back Rule
x 3% cut-back rule
x Taxpayers must reduce itemized deductions other
Taxpayers than medical expenses, gambling losses, investment
interest, and casualty & theft losses by 3% of their
y 2008 threshold: $159,950 (79,975 if MFS)
y 2009 threshold: $166,800 (83,400 if MFS)
y The threshold is indexed for inflation
x The reduction may not exceed 80% of deductions
subject to cut-back
x TPs only lose 1/3 of phased-out amount for 2008/09!
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- Spring '11