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Posted May 21st, 2018

Anticipating and Avoiding Problems

The world of charitable gift planning is a world of well-meaning donors who do a world of good across an incredible spectrum of needs, wants and aspirations. It’s too bad, but it must not be ignored by gift planners, that the most well-meaning donor can be tripped up by the tax law, be given faulty… read more

Posted April 30th, 2018

Solutions to a Math (Choke) Lesson in Gift Planning

We left off last time with a challenge to you, the reader, to solve a problem and also to check your solution. The problem is a real-world gift planning problem. In terms of difficulty, it’s a simple first-year algebra problem The solution of n, the number of shares to be donated, is given to be:… read more

Posted April 18th, 2018

A Math (Choke) Lesson in Gift Planning

Here are the facts: Donor owns 100 shares of ABC stock, which is publicly traded. Each share is worth $200 and has a $50 cost basis. What Donor wants to do: Donor wants to donate some of the shares and sell the remaining shares. She wants the charitable deduction for the donation to offset exactly… read more

Posted April 4th, 2018

Gift Substantiation: Two Recent Tax Court Cases Are Revealing

What they reveal is how tough the IRS and the Tax Court have gotten on gift substantiation . . . gift receipt and “Qualified Appraisal” rules. The first case involves a gift of real estate to the University of Michigan. The donor was a partnership that had purchased the real estate for $2.5 million. More… read more

Posted March 28th, 2018

Let’s Look at Charitable IRA Gifts

The Charitable IRA gift is likely to be the gift of choice going forward for many American 70½ and older. “Going forward” means in the wake of the 2017 tax law changes. One doesn’t need to itemize deductions to save taxes via a Charitable IRA gift (called a “qualified charitable distribution,” or QCD) … given… read more

Posted March 7th, 2018

Answers to the Planning Problem

Here’s the gift planning problem from last time. Don wants his name on Charity’s new clinic building. Charity’s president, Ron, has told Don it will cost him a big chunk of change, $X, in cash or securities or in a combination of both. Don is just about to sign a pledge agreement to this effect… read more

Posted February 19th, 2018

Planning Problem

Now that we know all about pledges (Click to read Part One, Two, Three, Four, Five, Six), a gift planning problem. Don wants his name on Charity’s new clinic building. Charity’s president, Ron, has told Don it will cost him a big chunk of change, $X, in cash or securities or in a combination of… read more

Posted February 9th, 2018

Let’s Look at Some Key IRS Rulings, Part 6

We continue looking at IRS rulings on pledges (read Part 5 here). First up is a 1981 Revenue Ruling, Rev. Rul. 81-110. The facts here are that Party A made a legally enforceable pledge to a charity. Subsequently, Party B paid the pledge. Focusing on the fact that Party B’s payment relieved Party A of… read more

Posted January 4th, 2018

Let’s Look at Some Key IRS Rulings, Part 5

We want now to look at some IRS rulings on pledges (Read Part 4 here). These rulings are important, as will become obvious. First, though, some background on pledges. A pledge is a promise to make a gift or gifts. A promise to do something else, such as to make and keep in force a… read more

Posted December 27th, 2017

Let’s Look at Some Key IRS Rulings, Part 4

Before we leave our discussion of third-party buyers (buyers-in-the-wings), we need to look at one more IRS ruling, a private ruling from 1994 (LTR 9452026). Read Part 1 here. Read Part 2 here. Read Part 3 here. This is a good one. The facts are that an individual proposed transferring both securities and a valuable… read more

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