The Tax Law of Charitable Giving

ISBN-13: 9781119756002 / Angielski / Twarda / 2021 / 864 str.

Gavin Oattes

Spis treści

Preface xvBook Citations xixPart One Introduction to the Tax Law of Charitable Giving1 Charitable Giving Law: Basic Concepts 3 1.1 Introduction to Charitable Contribution Deduction 3 1.2 Defining Tax-Exempt Organizations 5 1.3 Charitable Organizations Law Philosophy 8 1.4 Statistical Profile of Charitable Sector 23 1.5 History of Charitable Contribution Deduction 29 1.6 Charitable Contribution Deduction Reform Proposals 322 Fundamental Concepts 35 2.1 Definition of Gift 36 2.2 Definition of Donor 83 2.3 Definition of Charitable Organization 84 2.4 Public Charities and Private Foundations 96 2.5 Unrelated Business Law 113 2.6 Factors Affecting Income Tax Deductibility of Charitable Gifts 121 2.7 Charitable Organizations Listing Reliance Rules 122 2.8 Grantor Trust Law 1263 Contributions of Money and Property 129 3.1 Contributions of Money 129 3.2 Contributions of Property in General 130 3.3 Contributions of Long-Term Capital Gain Property in General 132 3.4 Contributions of Ordinary Income Property 132 3.5 Certain Contributions of Capital Gain Property 136 3.6 Contributions of Property for Unrelated Use 139 3.7 Step Transaction Doctrine 142 3.8 Charitable Pledges 148Part Two Charitable Giving in General4 Timing of Charitable Deductions 153 4.1 Overview of Law 154 4.2 Contributions of Money in General 155 4.3 Contributions of Money by Check 155 4.4 Contributions of Money by Credit Card 158 4.5 Contributions of Money by Telephone 159 4.6 Contributions of Securities 159 4.7 Contributions of Copyright Interest 162 4.8 Contributions by Means of Notes 163 4.9 Contributions by Letters of Credit 163 4.10 Contributions of Property Subject to Option 164 4.11 Contributions of Stock Options 165 4.12 Contributions of Credit Card Rebates 167 4.13 Contributions of Tangible Personal Property 167 4.14 Contributions of Real Property 168 4.15 Contributions of Easements 168 4.16 Contributions by C Corporations 169 4.17 Contributions by S Corporations 170 4.18 Contributions by Partnerships 171 4.19 Contributions by Means of the Internet 1735 Limitations on Annual Deductibility 175 5.1 Overview of Law 176 5.2 Individuals' Contribution Base 179 5.3 Corporations' Taxable Income 179 5.4 Percentage Limitations: An Overview 180 5.5 Sixty Percent Limitation 182 5.6 Fifty Percent Limitation 183 5.7 Thirty Percent Limitation for Gifts of Certain Property 186 5.8 Electable 50 Percent Limitation 189 5.9 General 30 Percent Limitation 193 5.10 Interplay of 50 Percent/Special 30 Percent Limitations 194 5.11 Interplay of 50 Percent/General 30 Percent Limitations 194 5.12 Interplay of Special 30 Percent/General 30 Percent Limitations 195 5.13 Twenty Percent Limitation 195 5.14 Qualified Conservation Contribution Law 196 5.15 Conservation Gifts by Farmers and Ranchers 196 5.16 Gifts for the Use of Charity 198 5.17 Blending Percentage Limitations 199 5.18 Rules for Spouses 200 5.19 Information Requirements 202 5.20 Percentage Limitation for Corporations 2026 Estate and Gift Law 205 6.1 Overview of Law 205 6.2 Federal Gift Tax 207 6.3 Federal Estate Tax 218 6.4 Unification of Taxes 234 6.5 Remainder Interests 234 6.6 Ascertainability of Value of Charitable Interest 2447 Unique Charitable Contribution Laws 249 7.1 Works of Art 250 7.2 Gems 254 7.3 Inventory 256 7.4 Scientific Research Property 264 7.5 License to Use Patent 265 7.6 Easements and Other Conservation Property 267 7.7 S Corporation Stock 292 7.8 Section 306 Stock 300 7.9 Retirement Plan Accounts 302 7.10 Commodity Futures Contracts 309 7.11 Donors' Creations 311 7.12 Charity Auctions 312 7.13 Services 319 7.14 Unreimbursed Expenses 321 7.15 Limitation on Deduction for Expenses Due to Pleasure 327 7.16 Automobile Expenses 331 7.17 Use of Property 331 7.18 Bargain Sales 332 7.19 Property Subject to Debt 338 7.20 Future Interests in Tangible Personal Property 341 7.21 Contributions by Trusts 342 7.22 Taxidermy 351 7.23 Clothing and Household Items 352 7.24 Vehicles 352 7.25 Intellectual Property 359 7.26 Foreign Tax Credit 363 7.27 Subsistence Whaling Expenses 364 7.28 Virtual Currency Transactions 3658 Additional Aspects of Deductible Giving 367 8.1 Contributions by Means of an Agent 368 8.2 Contributions for the Use of Charity 369 8.3 Conditional Contributions 371 8.4 Earmarking of Contributions for Individuals 377 8.5 Interrelationship with Business Expense Deduction 380 8.6 Denial of Deduction for Lobbying Activities 382 8.7 Deductible Contributions to Noncharitable Organizations 383 8.8 Reallocation of Deductions 388 8.9 Funding of Terrorism 388 8.10 Statute of Limitations 389 8.11 Concept of Trust Income 389 8.12 Unrelated Business Income Charitable Deduction 393 8.13 Charitable Family Limited Partnerships 394 8.14 Abusive Tax Transactions 396 8.15 Public Policy Considerations 408Part Three Planned Giving9 Planned Giving and Valuation 417 9.1 Planned Giving Fundamentals 417 9.2 Partial Interests Law 420 9.3 Overview of Valuation Law 423 9.4 Standard Actuarial Factors 424 9.5 General Actuarial Valuations 426 9.6 Nonstandard Actuarial Factors 429 9.7 Securities Laws 43210 Charitable Remainder Trusts 435 10.1 Definitions 437 10.2 Charitable Remainder Annuity Trust Law 448 10.3 Charitable Remainder Unitrust Law 462 10.4 Issues 479 10.5 Tax Treatment of Distributions 492 10.6 Division of Charitable Remainder Trusts 499 10.7 Basis in Disposition of Term Interest 503 10.8 Taxation of Charitable Remainder Trusts 505 10.9 Mandatory Provisions 507 10.10 Private Foundation Law 508 10.11 University Endowment Investment Sharing 510 10.12 Charitable Remainder Trusts as Partners or Shareholders in REITs 512 10.13 Wealth Replacement Trusts 513 10.14 Calculation of Charitable Contribution Deduction 513 10.15 Merger of Charitable Remainder Trusts 519 10.16 Early Terminations of Charitable Remainder Trusts 519 10.17 Regular Termination of Charitable Remainder Trusts 52111 Pooled Income Funds 525 11.1 Definitions 526 11.2 Qualifying Pooled Income Funds 527 11.3 Allocation of Income 533 11.4 Recognition of Gain or Loss on Transfers 534 11.5 Mandatory Provisions 535 11.6 Private Foundation Law 536 11.7 Pass-Through of Depreciation 537 11.8 Tax Status of Funds and Beneficiaries 538 11.9 Multiorganization Pooled Income Funds 540 11.10 Comparison with Charitable Remainder Trusts 543 11.11 Charitable Contribution Deduction 54412 Charitable Gift Annuities 547 12.1 Contract as Vehicle Form 547 12.2 Tax Treatment to Donor 548 12.3 Deferred Payment Gift Annuities 549 12.4 Estate and Gift Tax Consequences 550 12.5 Unrelated Business Income Implications 550 12.6 Unrelated Debt-Financed Income Implications 551 12.7 Contrast with Other Planned Gift Methods 552 12.8 Antitrust Laws 553 12.9 Securities Laws 554 12.10 Charitable Contribution Deduction 55413 Other Types of Deductible Remainder Interests 557 13.1 Overview of Law 557 13.2 Qualifying Partial Interests 558 13.3 Remainder Interests in Personal Residences or Farms 558 13.4 Undivided Portions of Entire Interests in Property 56214 Charitable Lead Trusts 571 14.1 Overview of Law 571 14.2 Income Interests 572 14.3 Tax Treatment of Charitable Lead Trusts 574 14.4 Testamentary Use of Charitable Lead Trusts 576 14.5 Percentage Limitation Law 578 14.6 Private Foundation Law 578 14.7 Anti-Abuse Rule Concerning Income Interests 580 14.8 Charitable Income Trusts 582 14.9 Comparison with Charitable Remainder Trusts 583 14.10 Valuing Charitable Contribution Deduction 583 14.11 Charitable Contribution Deduction 58415 Contributions of and Using Life Insurance 587 15.1 Introduction 587 15.2 Life Insurance Concepts 588 15.3 Charitable Giving and Insurance 591 15.4 Insurable Interest 596 15.5 Unrelated Debt-Financed Income Law 599 15.6 Charitable Split-Dollar Insurance Plans 600 15.7 Insurance Contract Reporting Requirements 607Part Four International Charitable Giving16 International Giving by Individuals During Lifetime 611 16.1 Introduction 611 16.2 Overview of Law 612 16.3 Earmarking and Conduit Restrictions 615 16.4 Control over Foreign Donees 619 16.5 Summary 622 16.6 Income Tax Treaties 62317 International Giving by Individuals by Means of Estates 625 17.1 Overview of Law 625 17.2 Estate Tax Law 626 17.3 Gift Tax Law 632 17.4 Charitable Giving by Noncitizen Nonresidents 63218 International Giving by Corporations 635 18.1 Contributions to U.S. Charities for Foreign Use 635 18.2 Contributions of Money from Foreign Affiliate of U.S. Parent to Foreign Charities 636 18.3 Contributions of Goods or Services to Benefit Foreign Charities 637 18.4 Grants of Funds from U.S.-Related Foundation to Foreign Charities 638Part Five Administration of Charitable Giving Programs19 Substantiation and Appraisal Law 651 19.1 Introduction 652 19.2 Substantiation Law for Charitable Monetary Contributions 653 19.3 Substantiation Law for Charitable Contributions of $250 or More 654 19.4 Substantiation Law for Noncash Charitable Contributions 669 19.5 Substantiation Law for Conservation Contributions 675 19.6 Substantiation Law for Contributions of Motor Vehicles, Boats, and Airplanes 675 19.7 Substantiation Law for Contributions to Donor-Advised Funds 676 19.8 Appraisal Law 676 19.9 Appraisals of Clothing and Household Items 687 19.10 Recordkeeping Law 68820 Disclosure Law 693 20.1 Disclosure by Charitable Organizations in General 693 20.2 Quid Pro Quo Contribution Law 698 20.3 Disclosure by Noncharitable Organizations 70221 Special Events, Corporate Sponsorships, and Donor-Advised Funds 707 21.1 IRS Audit Guidelines 708 21.2 Special Events 712 21.3 Corporate Sponsorship Law 714 21.4 Donor-Advised Funds 71722 Reporting Law 739 22.1 Contribution Reporting by Individuals 739 22.2 Contribution Reporting by C Corporations 740 22.3 Contribution Reporting by S Corporations 740 22.4 Contribution Reporting by Partnerships 740 22.5 Contribution Reporting by Donees in General 741 22.6 Contribution Reporting in Unrelated Business Context 746 22.7 Noncash Contributions Reporting Law in General 749 22.8 Contributions of Vehicles Reporting Law 765 22.9 Contributions of Intellectual Property Reporting Law 767 22.10 Dispositions of Contributed Property Reporting Law 768 22.11 Personal Benefit Contract Reporting Law 771 22.12 Split-Interest Trust Reporting Law 77123 Valuation Principles and Various Penalties 773 23.1 Valuation of Property--General Principles 773 23.2 Valuation of Works of Art 779 23.3 Valuation of Securities 781 23.4 Valuation of Other Types of Property 784 23.5 Other Court Valuation Cases 793 23.6 Federal Tax Penalties 803 23.7 Burden of Proof Law 815 23.8 Burden of Production and Procedural Law 81724 State Fundraising Law 819 24.1 State Regulation in General 819 24.2 Historical Perspective 820 24.3 States' Police Power 822 24.4 Basic Definitions 823 24.5 Registration Law 824 24.6 Reporting Law 824 24.7 Exemptions from Regulation 825 24.8 Fundraising Cost Limitations 826 24.9 Prohibited Acts 827 24.10 Contract Law 828 24.11 Disclosure Law 829About the Author 831About the Online Resources 833Index 835

O autorze

BRUCE R. HOPKINS is the principal in the Bruce R. Hopkins Law Firm, LLC, and the Professor from Practice at the Kansas University School of Law. He is the author of over forty books, including The Law of Tax-Exempt Organizations, Twelfth Edition, The Law of Fundraising, Fifth Edition, and The Tax Law of Private Foundations, Fifth Edition.