Tax Break Bill
By Roberta Trzos
A package of tax breaks, including one that allows tax-free charitable donations from individual retirement accounts, has been gaining momentum. The Senate Finance Committee approved a two-year extension of measures that expired on January 1, 2015 and the IRA provision was part of the measures. The IRA provision allows someone 70½ or older to transfer required minimum distributions of up to $100,000 to public charities tax-free. The donations would be excluded from the IRA holder’s gross income. Other provisions in the bill include deductions for state and local sales taxes, a research and development tax credit, bonus depreciation and renewable energy tax breaks.
The bill, which would extend the tax provisions through 2016, will head to the Senate floor where it could be attached to highway funding legislation. Even if that’s not the vehicle, the committee’s Republican and Democratic leaders want the extenders package to move quickly.
Please contact Roberta Trzos, CFRE, director of personal giving at 248/659.5014 to learn more.