“America Gives More Act of 2014” has been passed in the House on July 17, by the vote of 277-130. Two old charitable giving tax breaks that have expired and two new ones have passed the House, leaving charities delighted. Among the Four charitable breaks, two are so-called “tax extenders” legislation that has expired but is typically resumed one or two years at a time along with dozens of other tax provisions.
The older Americans will be encouraged under this tax extender to give out their Individual Retirement Accounts, where a giving strategy that allows IRA owners age 70-1/2 or older to deduct up to $100,000 a year from income if the IRA funds are paid directly to certain public charities. Otherwise, the IRA owner would have to pay tax on the IRA funds before claiming the deduction. This new idea does away with the year-end rush for making charitable gifts and basically gives donors the opportunity to consider or reconsider making charitable gifts up until their tax return is due and still snag a tax deduction for the prior year.
