- March 2011
- New Tax Deal Lowers Estate Tax and Extends IRA Charity Break
- Democrats Turn Back Republican Health Care Repeal Amendment
- House & Senate Committees Hold Hearings on Tax Reform
- Obama's Budget Plan Calls for Cut in Charitable Deductions
- Republicans Propose Big Federal Budget cuts That Impact Non Profits
- Many Nonprofits Face Lawsuits over Madoff's Fraud
- Senator's Investigation into Ministries Leads to Tax Review
- Officials Say Oregon Charity Shifted Millions to Iran
- Budget-Strapped Cities Charge Nonprofits New Fees
- Nonprofits in CA Face More Fiscal Strain
- Virginia A.G. Says No State Funds Can Legally Go To Charities
- NV Court Rules Donor-Advised Funds Can Ignore Donor Advice
- CT University Fights to Preserve Donor List Confidentiality
- OR Sues Veterans Charities Accused of Misusing Funds
- The IRS Steps Up Scrutiny of Nonprofits
- IRS Investigates CA Hospital's Charity's Nonprofit Status
- Automatic Revocations Will Reshape Nonprofits Beyond 2011
- Postal Rates to Increase in April 2011
- All Pages
New Tax Deal Lowers Estate Tax and Extends IRA Charity Break
President Obama signed into law the Congressional approved tax deal that lowers estate-tax rates from 2009 levels and extends a benefit for older donors who tap their individual retirement accounts to make charitable donations.
The legislation sets estate-tax rates at 35 percent and establishes exemptions that would allow couples to pass estates as large as $10-million to their heirs tax-free. Individuals could pass on the first $5-million tax-free.
If Congress had failed to act before the end of the year, the estate tax, which had expired for 2010, would have jumped to 55-percent rate for individuals worth more than $1-million.
The tax deal also will allow people age 70 ½ and older to channel up to $100,000 a year from individual retirement accounts tax-free to charities in 2011. Such a break was in place for 2009, but Congress had not acted to extend it for 2010. Under this measure, not only would such donations be tax-free for any gift made in 2010, but also donors would be allowed to make retirement-account gifts through the end of January, 2011, and still count them in their 2010 tax returns..