Some red flags raised in area of charitable planning. (taxation of charitable contributions)

National Underwriter Life & Health-Financial Services Edition, September, 1994 by Kestel, April

Two changes in the taxation of charitable contributions are imminent. The first is the expiration of the 10-year exemption of publicly traded stocks granted as gifts. The second is the IRS' intention to question the validity of some charitable trusts that convert appreciated assets to cash while avoiding capital gains taxes. In the first case a bill to make the special exemption permanent is pending.

Two developments are unfolding in the tax treatment of charitable contributions which merit the attention of those professionals with an emphasis in the area of charitable planning. One will affect clients who give appreciated stock to private foundations, and the other affects those clients who have implemented a particularly aggressive type of charitable remainder trust...

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