"hr(bob) hofmann[at]att.net" <hrhofmann[at]att.net> wrote:

- quote -

Go to this webpage:
http://www.irs.gov/charities/article...=96136,00.html

Click on "download now" to download the large zip file that contains
Publication 78. I guess it's too large for them to want to take up web
space for it.

Stu

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On Mar 27, 9:46*pm, kam...[at]panix.com (Arthur Kamlet) wrote:
- quote -

I could not find Pub 78 on the IRS web site.

Bob Hofmann

========================================= MODERATOR'S COMMENT:
I went to IRS.Gov, typed PUB 78 in the search box on the upper
left, and hit ENTER. PUB 78 was at the top of the list. RDA

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"Arthur Kamlet" <kamlet[at]panix.com> wrote in message
news:gqk31a$c58$1[at]reader1.panix.com...
- quote -

Note that the publication sometimes misclassifies the type of organization.
I knew of one instance where the publication listed the organization as a
30% org., but its determination letter said it's a 50% org. [The
organization in that instance does not exist today, having closed its
doors.]

When in doubt, ask the organization.

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In article <9a76a5fb-ee41-4223-b818-d808c733950a[at]s38g2000prg.googlegroups.com> ,
removeps-groups[at]yahoo.com <removeps-groups[at]yahoo.com> wrote:
- quote -


IRS Pub 78 - a humongous database loaded with the names and type of all
organizations that the IRS has formally determined to meet the requirements
of their appropriate 501(c)(...) application, will also show if a
501(c)(3) is a 50% or a 30% organization.


- quote -

--

ArtKamlet at a o l dot c o m Columbus OH K2PZH

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On Mar 26, 7:43 pm, kam...[at]panix.com (Arthur Kamlet) wrote:

- quote -

The carryover lasts only 5 years. And if you donate to qualified
disaster areas, the limit is 100% of AGI.

http://www.irs.gov/publications/p526...blink100049751

I'm mind boggled by the rules for 50% organizations. Do organizations
typically know which category they belong to? Rule (6) seems to say
every charitable organization qualifies as 50% ("operated only for
charitable, ... purposes"). What about donor advised funds? Someone
mentioned them as belonging to the 30/20 category (as opposed to the
50/30).




- quote -

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D. Stussy <replies[at]newsgroups.kd6lvw.ampr.org> wrote:

- quote -

It seems to me that if one's income is that low, carrying forward
the unused charitable contribution deduction is not necessarily
a bad result -- depeending on future year scenarios. Avoiding having
the LTCG appear in AGI can have other positive side-effects (such
as enabling the Form 8880 credit).

You really do have to run the numbers.

Steve

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

in article
3f6b52bd-d97f-4499-bec7-1ce9094ac702...oglegroups.com, PeterL at
po.ning[at]gmail.com wrote on 3/26/09 9:50 PM:

- quote -

contributions. If you pay the tax and then take the deduction for federal
purposes, you will still pay OH tax on the sale. Much better to give away
the stock.

Uncompensated advice guaranteed correct or double your money back

Frank S. Duke, Jr. CPA
Cincinnati, OH USA

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"Reggie" <Reggie[at]wantsnospam.com> wrote in message
newsSXyl.84199$4m1.45163[at]bgtnsc05-news.ops.worldnet.att.net...
- quote -

Wrong. Remember that if one sells the stock then donates the proceeds, the
proceeds are NOT equal to the gain. There is a basis here. Also, the gain
will be taxed at a lower rate than the rate applying to the contribution
deduction, so it's possible to have a net tax benefit beyond that of
zeroing out the reportable gain. The donation of cash is a fixed value
transaction. The donation of stock isn't as fixed (the date can vary -
giving date or receipt date by charity, etc.), and is even worse if a
non-publically traded company. Furthermore, the donation of a non-cash
appreciated asset may change the AGI percentage limit in a single year (30%
or 20%, NOT 50%), forcing a charitable carryforward.

For those not in the 0% CG range, they are in the 15% CG range, but in the
25% or more range for ordinary income/deductions but may have the full 50%
AGI ceiling available. A non-operating private foundation as the recipient
forces a 30% AGI ceiling. There's a 10%+ rate difference in favor of the
deduction.

A $45K LTCG that is taxed at 0% still increases AGI so that the taxpayer is
likely to meet the 20% or 30% AGI ceiling without forcing a carryforward of
the $50K contributed (by $9K or $13.5K due to the inclusion itself).
Remember that to get the 0% rate, the taxpayer is going to have a low
taxable income (which implies deductions approaching AGI). With a low AGI
(one possibility), the deduction gets forced forward and is therefore worth
"less."

So, the question is:
Is the taxpayer better off with selling it and giving the proceeds (30% AGI
ceiling, where even a 0% LTCG raises the ceiling), or directly donating it
(a 20% AGI ceiling, with AGI being less), increasing the likelihood and
size of a contribution carryforward (which may be used at a different
[lesser] tax rate)?

It's usually better to maximize deductions in the current year than
carrying them forward.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"D. Stussy" <spam[at]bde-arc.ampr.org> wrote in message
news:gqhbpc$cma$1[at]aux.snarked.org...
- quote -

if your cap gain rate is zero, there is no difference. If your cap gain
rate is anything greater than zero, you are better off donating the stock
without selling. too simple a concept to need to RUN THE NUMBERS.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"Paul Thomas, CPA" <paulthomascpapc[at]bellsouth.net> wrote in message
news:2dSyl.20916$9a.18274[at]bignews1.bellsouth.net...
- quote -

In the past 20 years, that was often true. However, now that there's a 0%
long-term capital gains rate (for some) and a CG rate that is often less
than the regular tax rate, RUNNING THE NUMBERS is needed. Having $0
capital gain and a charitable deduction (even if carried forward) may be
better than contributing the stock (where basis doesn't enter into the
computation).

--
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In article <gqgirs$hl7$1[at]fred.mathworks.com> ,
Chris Ruehrwein <cruehrwe[at]mathworks.com> wrote:
- quote -


As others have said, gifting the stock avoids capital gains
consequences for you.

I have not seen a discusion of how much of a deduction yu can take.
Gifts of appreciated property to "50% organizations" -- most public
charities -- is limitd o 30% of your adjustedgross income, with a
carryover available.


For certain private foundations or donor directed funds that limit is
reduced to 20%.

So if your AGI is 80,000 and this is an affected 30% organization,
then only 20% x 80,000 = 16,000 of the 50,000 can be deducted
currently and the remainder carried forward.


A 50% organization means you may deduct up to 50% of your AGI for
cash contributions. Up to 30% of AGI for appreciated property.
--

ArtKamlet at a o l dot c o m Columbus OH K2PZH

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Chris Ruehrwein wrote:
- quote -

Yes, in the days when I still held non-IRA/401K stock at a profit, I
went this route.
12K basis, $40K value. In ATMland, the tax on the 28K gain would have
been $6300. So my $40K donation got me back $13,300 as well as the $6300
I didn't have to pay. Of course you don't make donations to get the
deductions, but by using a charitable fund (through Schwab) I was able
to maximize my tax situation and then spread the actual end donation
over a couple years.

That's my longwinded way of responding "gift the stock.'.
Joe

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On Mar 26, 12:36*pm, "Chris Ruehrwein" <crueh...[at]mathworks.com> wrote:
- quote -


Sell the stocks, and incur cap gains tax, which he has to pay first?
Give the stocks and claim a 50K charitable gift, provided that that
charity indeed qualifies.

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"Chris Ruehrwein" <cruehrwe[at]mathworks.com> wrote
- quote -




If he sells the stock he'll pay tax on the gains he actually realizes.

Then he'll get a deduction for any charitable contributions he makes with
his after-tax contribution of cash.




Gifting stock to a charity will generally reap a greater deduction.

Of course, facts and circumstances always apply. Deductibility of
charitable contributions may apply.







--
Paul Thomas, CPA
Watkinsville, Georgia

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Client has stock bought at 5K 10 years later worth 50k. Wants to donate it
to a private foundation that is not a operating foundation but qualifies as
a charity under 501. Should the client sell the stock and give the cash
proceeds to the charity or give the stock? What would be the client's
deduction in the best scenario?

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >