Favorable Tax Treatment of Contribution of IRA to Charity May End 12-31-2011

Unless Congress extends this benefit, the ability of taxpayers at least age 70-½ to contribute an IRA up to $100,000 in value directly to a public charity without having to report the IRA as taxable income followed by a charitable deduction (which does not offset the income 100%) will end as of December 31, 2011. Such a contribution will also satisfy the taxpayer’s Minimum Required Distribution for the year. If you are considering taking advantage of Code section 408(d)(8)(F), be sure to get the contribution started well before the end of the year.