Discussion:Sec. 208 of Fiscal Cliff Bill

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Discussion Forum Index --> Advanced Tax Questions --> Sec. 208 of Fiscal Cliff Bill


Discussion Forum Index --> Tax Questions --> Sec. 208 of Fiscal Cliff Bill

MIG999 (talk|edits) said:

7 January 2013
Looking at section 208 of the "American Tax Relief Act of 2012" it appears that the tax-free distributions from individual retirement plans to charities is back on the table. The very last part of section 208 seems to indicate that if you have received a distribution from your IRA, you can retroactively call it a charitable contribution as long as you make the contribution before February 1, 2013. Does anyone have any insight concerning the mechanics of this? Any thoughts about IRS requirements or a particular form institutions might have to file?

Any guidance is appreciated. I have a couple of clients in this situation.

Thanks,

Mark g.

Death&Taxes (talk|edits) said:

7 January 2013
Kiplinger, for what it is worth, states that payments received in December 2012 can qualify if transmitted to a charity before 2/1/13, and notes that 'direct transfers made in Jan 2013 from their IRAs to charity as if the transfers were made for 2012.'

MIG999 (talk|edits) said:

8 January 2013
That will be interesting. I assume the broker/bank will prepare a 1099 for the IRA distribution. When that income does not appear on the tax return, I assume IRS will send a notice that will require a response. More aggravation for clients.

Mark g.

Death&Taxes (talk|edits) said:

8 January 2013
But the brokers have been doing this since this provision began: 1099R with blocks 1 & 2 being same and coded '7.' My software then provides a place to fill in the amount donated, and puts the letters "QCD" on Line 15(b) to the left of the numbers. The only complication that might arise is treating a January 2013 payment as charity......no 2012 1099R.

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