Congress acted last week to extend the Charitable IRA Rollover gift for 2012 and 2013 and made provisions to allow donors to still take advantage of the 2012 deduction by acting before January 31, 2013.  Since 2006, IRA owners age 70½ and older have been able to make a qualified charitable distribution of up to $100,000 each year. This provision had expired, however, and was not extended until The American Taxpayers Relief Act (ATRA) did so in ways that impact both 2012 and 2013.

  1. First, ATRA creates a way for qualified donors to still take advantage of the Rollover in 2012.  As long as you do so by January 31, 2013, those who received their IRA distribution in December of 2012 can make a charitable gift to a public charity such as the Land Trust Alliance and have it treated for tax purposes as a 2012 contribution. You can give an amount equal to part or all of the IRA distribution up to $100,000 before January 31, and the gift will be treated as a 2012 Charitable IRA Rollover gift. This means that you will not be taxed on this portion of your December 2012 IRA distribution.
  2. Also, an eligible donor may make a 2013 Charitable IRA Rollover gift of up to $100,000 to the Land Trust Alliance or another public charity anytime in 2013.

For many Land Trust donors age 70 ½ or older, this is a smart way to advance the work of land conservation. Saving on your tax bill may allow you to give even more generously. Remember, you need to act before January 31 to take advantage of the 2012 tax-savings opportunity.

This information is provided as an educational service. As in all cases, please consult your own advisors who alone must assume complete responsibility for advising you whether or not this plan is appropriate in your unique circumstance.