Tresury, RS ssue proposed regultons on chrtble contrbutons nd stte nd locl tx credts

R-018-17, ug. 3, 018

R-018-17, ug. 3, 018

WSHNGTON — Tody the U.S. Deprtment of the Tresury nd the nternl Revenue Servce ssued proposed regultons provdng on the vlblty of chrtble contrbuton deductons when the tyer receves or eects to receve correspondng stte or locl tx credt.

WSHNGTON — Tody the U.S. Deprtment of the Tresury nd the nternl Revenue Servce ssued proposed regultons provdng on the vlblty of chrtble contrbuton deductons when the tyer receves or eects to receve correspondng stte or locl tx credt.

The proposed regultons ssued tody re desgned to clrfy the reltonshp between stte nd locl tx credts nd the federl tx for chrtble contrbuton deductons. The proposed regultons re vlble n the Federal Register.

The proposed regultons ssued tody re desgned to clrfy the reltonshp between stte nd locl tx credts nd the federl tx for chrtble contrbuton deductons. The proposed regultons re vlble n the Federal Register.

Under the proposed regultons, tyer who mkes pyments or trnsfers property to n entty elgble to receve tx deductble contrbutons must reduce ther chrtble deducton by the mount of ny stte or locl tx credt the tyer receves or eects to receve.

Under the proposed regultons, tyer who mkes pyments or trnsfers property to n entty elgble to receve tx deductble contrbutons must reduce ther chrtble deducton by the mount of ny stte or locl tx credt the tyer receves or eects to receve.

For exmple, f stte grnts 70 stte tx credt nd the tyer pys $1,000 to n elgble entty, the tyer receves $700 stte tx credt. The tyer must reduce the $1,000 contrbuton by the $700 stte tx credt, levng n llowble contrbuton deducton of $300 on the tyer’s federl ncome tx return. The proposed regultons lso pply to pyments mde by trusts or decedents’ esttes n determnng the mount of ther contrbuton deducton.

For exmple, f stte grnts 70 stte tx credt nd the tyer pys $1,000 to n elgble entty, the tyer receves $700 stte tx credt. The tyer must reduce the $1,000 contrbuton by the $700 stte tx credt, levng n llowble contrbuton deducton of $300 on the tyer’s federl ncome tx return. The proposed regultons lso pply to pyments mde by trusts or decedents’ esttes n determnng the mount of ther contrbuton deducton.

The proposed regultons provde exceptons for dollr-for-dollr stte tx deductons nd for tx credts of no more thn 15 of the pyment mount or of the fr mrket vlue of the property trnsferred. tyer who mkes $1,000 contrbuton to n elgble entty s not requred to reduce the $1,000 deducton on the tyer’s federl ncome tx return f the stte or locl tx credt receved or eected to be receved s no more thn $150.

The proposed regultons provde exceptons for dollr-for-dollr stte tx deductons nd for tx credts of no more thn 15 of the pyment mount or of the fr mrket vlue of the property trnsferred. tyer who mkes $1,000 contrbuton to n elgble entty s not requred to reduce the $1,000 deducton on the tyer’s federl ncome tx return f the stte or locl tx credt receved or eected to be receved s no more thn $150.

Tresury nd RS welcome publc comments on these proposed regultons. For detls on submttng comments, see the proposed regultons.

Tresury nd RS welcome publc comments on these proposed regultons. For detls on submttng comments, see the proposed regultons.

Updtes on the mplementton of the TCJ cn be found on the Tax Reform pge of RS.gov.

Updtes on the mplementton of the TCJ cn be found on the Tax Reform pge of RS.gov.


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