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If I donate stock from my IRA to a charity, does that become a taxable event?

Can I take it as a deduction whetehr it is taxable or not?

Does the timing matter, i.e. whether I have already taken my full RMD or not? Which should be done first - the RMD or the donation or doesn't it matter?

Thanks.
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If I donate stock from my IRA to a charity, does that become a taxable event?

I assume you're talking about a qualified charitable distribution (QCD). Up to $100,000 sent directly from the IRA custodian to the charity is not included in your income but counts against your RMD. You cannot deduct it on Schedule A.

For more information see Pub 590 or talk to your custodian. This provision expires 12/31/2012. As of today.

Phil
Rule Your Retirement Home Fool
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I assume you're talking about a qualified charitable distribution (QCD). Up to $100,000 sent directly from the IRA custodian to the charity is not included in your income but counts against your RMD. You cannot deduct it on Schedule A.

For more information see Pub 590 or talk to your custodian. This provision expires 12/31/2012. As of today.

Phil
Rule Your Retirement Home Fool

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Unless you mean that they passed something today, that provision expired as of 12/31/11, to the best of my information.

Bill
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Unless you mean that they passed something today, that provision expired as of 12/31/11, to the best of my information.

That was my initial recollection too, but then I found something saying it went through 2012 when they did the December 2010 changes. I couldn't find anything definitive. Do you have a good cite?

OP's custodian knows for sure. I hope.

Phil
Rule Your Retirement Home Fool
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Unless you mean that they passed something today, that provision expired as of 12/31/11, to the best of my information.
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That was my initial recollection too, but then I found something saying it went through 2012 when they did the December 2010 changes. I couldn't find anything definitive. Do you have a good cite?

OP's custodian knows for sure. I hope.

Phil
Rule Your Retirement Home Fool

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Well, I can't re-post or link to proprietary material from RIA, but the reference is to Internal Revenue Code Section 408(d)(8)(F), which reads:

(F) Termination. This paragraph shall not apply to distributions made in taxable years beginning after December 31, 2011.

And that's the current State of the Union, per Thompson Reuters.

And looking over the history of that section, it pointed out that back when they did that extension at the end of 2010, they did it so late that they let you count distribtuions in January 2011 as part of 2010.

Of course they'd never let that happen again, right?

Bill
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And looking over the history of that section, it pointed out that back when they did that extension at the end of 2010, they did it so late that they let you count distribtuions in January 2011 as part of 2010.

Thanks. Yeah, I remember the part about designating 2011 contributions as 2010. The IRS kinda flubbed on this one in Pub 590. They include all the QCD information but didn't include the expiration in the 2012 changes.

To the OP, anything you take out of your traditional IRA counts as income, and you deduct your charitable contributions on Schedule A within the rules explained in Pub 526.

Of course they'd never let that happen again, right?

I doubt they will on this particular one.

Phil
Rule Your Retirement Home Fool
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