Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: irasmilo Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121572  
Subject: Re: Qualified Charitable Distributions Date: 1/3/2013 12:07 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
I'm slogging my way through the Cliff legislation, and here's one provision which could affect your 2012 taxes if you choose. For information about the rules for QCD's see IRS Publication 590.

This provision, which allows those facing RMD's to direct money to a charity without including it in income and expired after 2011, has been extended through 2013.

Since the legislation came after the tax year was over, there's a special rule for distributions taken in December 2012. You can make a cash contribution rather than the direct transfer from custodian to charity required for this treatment. If you want to take advantage of this for 2012 you have until the end of January to act.


I knew that provision was in there, but I wasn't sure how they were going to address RMDs that were already taken in 2012. What is the mechanism for availing oneself of the QCD? Can one just total all of the charitable contributions made on/after the date(s) of the RMDs up to January 31, 2013 and claim them as a QCD (not to exceed the total RMD)? Or is there something else?

Ira
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Economic Implications of Cuba
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement