Random Things to Memorize Flashcards
What amount to you need to complete a donor form 8283 for NONCASH ASSETS?
$500 - $5,000
What is the amount the donor completes the form 8283 AND the charity completes 8282 for NONCASH ASSETS?
Over $5,000
For PUBLICALLY TRADED SECURITIES at what value does a donor complete form 8283?
All but the charity does not sign
For NONPUBICIALLY TRADED SECURITIES at what amount does the donor complete the form 8283?
$5,000+ and the charity signs the form 8283
Over $10,000 appraisal needed and attached to form 8283
What is required to be on the Form 8283 (donor)?
- FMV
- Cost Basis
- How and when acquired
- Description of property
- How valued
What is required on form 8282 (charity)?
- Description
- How that use is related to its charitable exempt purpose
- Whether it provided certification to the donor
- Charity gives the price at which the property was sold
Amount for an appraisal for NONCASH Assets?
$5,000
Amount when you need an appraisal for NONPUBLICALLY TRADED SECURITIES?
$10,000
Value of ART for an appraisal?
$20,000
SALT
State and Local Taxes
Total maximum deductible is $10,000
Taxpayers can deduct mortgage interest paid on acquisition indebtedness up to ____________?
$750,000
Homes purchased before 12/15/17; the maximum amount of acquisition debt is________________?
$1M
Standard Deduction for SINGLE person?
$12,400
Standard Deduction for MARRIED couple?
$24,800
How is Charitable Gift Annuities Taxed?
Basis/Principal
Cap Gains (after out lives life expentancy)
Income - blend (cap gain and income)
How are Charitable Remainder Trust Taxed?
- Income
- Cap Gain
- other (tax free)
- Corpus
Long-Term Capital Gains %
0-20%
0% low income
15% normal
20% High income
What are collectibles Capital Gains?
28%
Does income tax deductions for charitable contributions offset NIIT?
NO
Net Investment Income Tax is 3.8% and applies to: Interest, dividends, payments from rental properties and cap gains from mutual funds
3.8%
PEASE Amendment
Prior to 12-31-2017
Reduced itemized deductions by 3% for taxpayers with AGIs exceeding certain thresholds
Raises taxes on high-income tax payers by reducing, then eliminating, the value of their personal exemptions.
2018-2025 it is suspended
What is the gift tax annual exclusion?
$15,000 - Individual
$30,000 - Couple
What is the Lifetime Exclusion for Taxes?
11.58M during lifetime or at death
Carryover basis?
During life
Single Premium Immediate Annuity (SPIA)
What can be used to fund this?
Cash only
When to consider CLT?
Liquidity Event (selling business)
IPO - generates lump sum deduction in year that the shareholder had gain on the stock
Benefit younger generations in the future - pass with little or no gift tax
Client who want to benefit the charity now
Private Foundations are regulated by?
State and Federal government
6 Private Foundation Rules
(ESREJT)
EAT SWEET RICE EACH JAPANESE TIME
- Excise tax
- self dealing rules
- required distributions
- excess business holdings
- jeopardy investments
- taxable expenditures
Conduit or Pass-Through Foundation
A Private Foundation that must distribute 100% of net assets each year
May pay reasonable admin expenses from assets
Receives public tax treatment for income tax purposes
What amount do you need an appraisal for life insurance?
$5,000
What is Viatical?
Also known as life settlement
Sale of in-force policy to a third party
Cash in, withdrawal (if policy permits), or loan against policy
What is the AGI and % for Conservation easements?
50% AGI
Deductible up to 100%
15 Year Carryover
Must Be:
legally binding
Must be Permanent
Must restrict the use, modification and development of property like land, natural habitats and historical sites
(parks, wetlands, and historic buildings)
How is an easement valued for income tax deduction?
Determined by a qualified ______________________ based on comparable sales, if any, or by the ________________________ method
Determined by a qualified appraisal** based on comparable sales, if any, or by the **subtraction method
the amount by which the FMV is reduced by the conservation easement
(FMV with no restrictions minus the FMV with restrictions)
Pooled Income Fund (PIF) deduction is based on the remainder interest computed using the fund’s highest income in past __ years?
3 years
Provides partial income tax charitable deduction
Avoids tax on long-term gain contributions
Impact investments are investments made with the intention to generate positive, measureable social and environmental impact alongside a ______________(via GIIN)
Financial Return.
4 characteristics of Impact investing
- Intentionality
- investment, with an expectation of return
- Range of return expectations and asset classes
- impact measurement
Debt against gifted property can create __________ ____________ to the donor and also create _______________________ to the charity.
Debt against gifted property can create taxable income** to the donor and also create **unrelated business income tax (UBIT) to the charity.
What is the tool in assignment 10 - The Hurleys?
Discovery/Agreement Memo
AKA Talking Points Memo
What is NGO Source?
Project of the Council on Foundations and TechSoup which helps grant makers streamline and save their international giving.
(centralizing, streamlining, and standardizing the ED process for US grant makers)
Philanthropy Protection Act of 1995
stipulates that the charity offering a gift annuity will provide a disclosure statement to all annuitants in a Gift Annuity Fund and also provide the same to all prospective donors at the time of solicitation, using a letter or pamphlet format. If the charitable organization commingles investment assets, it must provide a disclosure statement to all annuitants in a Gift Annuity Fund and also provide the same to all prospective donors at the time of solicitation, using a letter or pamphlet format. The Act also prohibits the payment of commissions or other remuneration to anyone based on the value of a charitable gift annuity.
