The Internal Revenue Service has again issued guidelines for
year-end contributions to charitable organizations. Several
important tax law provisions have taken effect in the last several
years that provide both clarity and rules in order to maximize and
adequately substantiate your deductible contributions.
Special Charitable Contributions For Certain IRA Owners
An interesting provision offers older owners of individual
retirement accounts (IRAs) a different avenue for making charitable
contributions. An IRA owner, age 70 ½ or over, can directly
transfer tax-free up to $100,000 per year to an eligible charitable
organization. This provision was recently extended through 2009 and
is available regardless of whether IRA owners itemize their
deductions. To qualify, the funds must be contributed directly by
the IRA trustee to the eligible charity. Certain charities are
ineligible, such as donor-advised funds and supporting
organizations. Amounts transferred are not
