The Tax Law of Charitable Giving, 2017 Supplement

BRUCE R. HOPKINS (Kansas City, MO) is a senior partner with the firm Polsinelli Shughart PC. He is also the author of more than 35 books, including The Law of Tax–Exempt Organizations, 10e, The Law of Fundraising, 4e, Nonprofit Law for Colleges and Universities, Nonprofit Governance, and Nonprofit Law Made Easy, as well as the monthly newsletter Bruce R. Hopkins′ Nonprofit Counsel, all published by Wiley. Hopkins earned his Juris Doctorate and Master of Laws degrees at the George Washington University. He has practiced law for 40 years and is a member of the District of Columbia and Missouri bars. Hopkins received the 2007 Outstanding Nonprofit Lawyer Award (Vanguard Lifetime Achievement Award) from the American Bar Association, Section of Business Law, and Committee on Nonprofit Corporations. He is listed in The Best Lawyers in America, Nonprofit Organizations/Charities Law, 2007–2008.

Preface ix
About the Author xi
Book Citations xiii
PART ONE INTRODUCTION TO THE TAX LAW OF CHARITABLE GIVING 1
Chapter One Charitable Giving Law: Basic Concepts 3
∗§ 1.3 Principles of Charitable Organizations Law Philosophy 3
∗§ 1.4 Statistical Profile of Charitable Sector 3
Chapter Two The United States Tax System: An Overview 5
§ 2.5 Deductions 5
§ 2.6 Standard Deduction 6
§ 2.7 Concept of Taxable Income 6
§ 2.15 Taxation of Income 6
PART TWO BASICS OF CHARITABLE GIVING LAW 9
Chapter Three Fundamental Concepts 11
∗§ 3.1 Meaning of Gift 11
§ 3.2 Meaning of Donor 12
§ 3.4 Public Charities and Private Foundations 12
§ 3.6 Factors Affecting Income Tax Deductibility of Charitable Gifts 13
∗Chapter Four Gifts of Money and Property 15
§ 4.3 Gifts of Long–Term Capital Gain Property in General 15
PART THREE CHARITABLE GIVING IN GENERAL 17
Chapter Six Timing of Charitable Deductions 19
§ 6.13A Gifts of Easements (New) 19
§ 6.15 Gifts by S Corporations 19
Chapter Seven Percentage Limitations 21
§ 7.12A Qualified Conservation Contributions 21
∗§ 7.12B Conservation Gifts by Farmers and Ranchers 22
Chapter Eight Estate and Gift Tax Considerations 25
§ 8.2 Federal Gift Tax 25
Chapter Nine Special Gift Situations 27
§ 9.3 Inventory 27
§ 9.7 Conservation Property 28
∗Easements and Other Conservation Property 28
§ 9.10 Retirement Plan Accounts 35
∗§ 9.19 Bargain Sales 35
∗§ 9.22 Contributions by Trusts 35
∗§ 9.22A Contributions by Estates 36
Chapter Ten Other Aspects of Deductible Giving 41
∗§ 10.1 Valuation of Property 41
∗§ 10.4 Conditional Gifts 42
∗§ 10.7 Interrelationship with Business Expense Deduction 42
∗§ 10.14 Penalties 44
§ 10.15 Transactions of Interest 45
PART FOUR PLANNED GIVING 47
Chapter Twelve Charitable Remainder Trusts 49
∗§ 12.2 Charitable Remainder Annuity Trust Rules 49
∗§ 12.4 Issues 51
∗§ 12.12 Calculation of Charitable Deduction 52
Chapter Thirteen Pooled Income Funds 55
§ 13.7 Pass–Through of Depreciation 55
Chapter Sixteen Charitable Lead Trusts 57
§ 16.7 Private Foundation Rules 57
PART FIVE INTERNATIONAL CHARITABLE GIVING 59
Chapter Eighteen International Giving by Individuals during Lifetime 61
PART SIX ADMINISTRATION OF CHARITABLE GIVING PROGRAMS 63
Chapter Twenty–One Substantiation and Appraisal Requirements 65
∗§ 21.3 Substantiation Requirements for Gifts of $250 or More 65
∗§ 21.4 Substantiation Requirements for Noncash Gifts 68
∗§ 21.5 Appraisal Requirements 68
§ 21.7 Appraisals of Clothing and Household Items 69
∗§ 21.8 Burden of Proof Rules 69
Chapter Twenty–Three Special Events, Corporate Sponsorships, and Donor–Advised Funds 71
§ 23.4 Donor–Advised Funds 71
PART SEVEN APPENDICES 73
∗Appendix H Monthly Federal Interest Rates Used in Valuing Partial Interests (IRC § 7520) 75
Appendix I Deemed Rates of Return for Transfers to New Pooled Income Funds 85
TABLES 87
Cumulative Table of Cases 89
Cumulative Table of IRS Revenue Rulings and Revenue Procedures 101
Cumulative Table of IRS Private Determinations Cited in Text 105
Cumulative Table of IRS Private Letter Rulings, Technical Advice Memoranda, and General Counsel Memoranda 109
Table of Cases Discussed in Bruce R. Hopkins Nonprofit Counsel 121
Cumulative Table of IRS Revenue Rulings Discussed in Bruce R. Hopkins Nonprofit Counsel 127
Cumulative Table of Private Letter Rulings and Technical Advice Memoranda Discussed in Bruce R. Hopkins Nonprofit Counsel 129
Table of Charitable Giving Law Tax Reform Proposals 131
Cumulative Index 139