It looks like the IRA charitable rollover may be permanently extended, if a deal between House and Senate negotiators announced yesterday ultimately becomes law.
The IRA charitable rollover allows taxpayers who are 70½ to donate up to $100,000 to charitable organizations directly from their individual retirement account without treating the distribution as taxable income. In recent years, the provision has been renewed on essentially a year-by-year basis, which creates uncertainly for both donors and nonprofits. Having a permanent rollover in place will allow donors to more efficiently plan their gifts in advance.
The Council on Foundations has reported that, in addition the IRA rollover provision, ten other tax extenders (temporary tax provisions that must be renewed periodically) would become permanent law. Included in such extenders are the deduction for conservation easement contributions and the deduction for gifts of food inventory.
However, White House support for the provision is not certain. The Obama administration has objected in the past to making the provision permanent if the revenue loss isn’t offset.
Leaffer Law Group will continue to monitor this as it develops, and will keep readers apprised on the blog.