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HEADLINES
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 SEPT.
8, 2000
Tax Tid-Bits
Budget Proposals Liberalize
Charitable Deduction Rules
 The
Clinton Administration’s fiscal 2001 budget includes some items that would
affect charitable deduction rules:
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Repealing the 30% limitation for gifts of appreciated property:
This would remove the 30%-of-AGI limitation on charitable deductions
for gifts of long-term capital gain property to public charities. But the
overall 50%-of-AGI limitation would apply to gifts of property or cash.
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Reducing the private foundation excise tax:
The 2% excise tax private foundations pay on net investment income
would be reduced to 1% in certain cases. The two-tier tax would be replaced
with a single 1.25% excise tax rate.
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Regulating donor-advised funds:
Donor-advised funds, which allow donors to claim immediate deductions
for contributions and to advise regarding the ultimate distribution of
their money, would be required to meet specific requirements to avoid being
treated as private foundations for federal tax purposes.
Source: St. Jude Children’s Research
Hospital
Techniques, Third Quarter, 2000
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