What the Care Act Will Mean For You

The Charity Aid, Recovery and Empowerment Act of 2003 (CARE ACT) is poised to be passed into law soon. This exciting legislation opens up a wide variety of charitable giving opportunities for donors throughout our three communities. What should you know about this important legislation? Here is a brief primer!

- Charitable tax deduction of up to $400 for individual taxpayers and $800 for couples who do not itemize on their tax returns.

- Allow IRA holders to make tax advantaged charitable contributions from their accounts.

- The IRA Rollover in the CARE Act allows donors to transfer funds from their IRA to charity as a split-interest gift at age 59_ and as a direct gift at age 70_. The IRA Rollover in the Charitable Giving Act allows both types of gifts at age 70_. This would open a wealth of giving opportunities for a very heavily taxed portion of an individual’s assets.

- Modification of the unrelated business income tax for charitable remainder trusts

Find out more about this legislation or how you might be able to use this new legislation when it is passed for your charitable and financial advantage by contacting us.