Paul L. Caron

Sunday, September 8, 2019

Reforming The Charitable Contribution Tax Deduction: Accounting For Random Acts Of Charity

Janene R. Finley (St. Ambrose University), Reforming the Charitable Contribution Tax Deduction: Accounting for Random Acts of Charity, 10 Wm. & Mary Bus. L. Rev. 479 (2019):

Concern for the tax treatment of charitable contributions has increased as a result of the Tax Cuts and Jobs Act of 2017. Although the new law increased the limitation of deductible charitable contributions to 60 percent of adjusted gross income, the standard deduction was also increased. Increasing the standard deduction is expected to reduce the number of taxpayers who are able to itemize their deductions in the next tax year, which is expected to reduce charitable giving in the future. This Article discusses proposals to amend the Internal Revenue Code to promote charitable giving, including a non-itemizer deduction.

In addition, random acts of charity are explained, and consideration of those acts as charitable contributions for purposes of the charitable contribution tax deduction is proposed.

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It seems overdue that we end the whole concept of getting an inter vivos tax deduction for making a "charitable" contribution. First, it flies in the face of what is charity, and secondly, it has corrupted the actual charitable organizations which now rely so heavily on that aspect and which would no doubt scream bloody murder if it were ended.

A testamentary gift might be treated differently.

Posted by: ruralcounsel | Sep 9, 2019 3:50:19 AM