The Tax Law of Charitable Giving (eBook)

2022 Cumulative Supplement

Bruce R. Hopkins (Autor)

eBook Download: EPUB

2022 | 6. Auflage
112 Seiten
Wiley (Verlag)
978-1-119-87356-3 (ISBN)

Infos

A can???t-miss resource for lawyers, accountants, consultants, board members, and leaders involved with charitable organizations In The Tax Law of Charitable Giving: 2022 Cumulative Supplement, 6th Edition, renowned legal professional Bruce R. Hopkins delivers an indispensable and timely update to the rapidly evolving law governing charitable giving in the United States. Filled with relevant and impactful regulatory and legislative amendments ??? as well as the latest significant developments in American case law ??? the Supplement is an essential resource for business leaders involved in charitable organizations and the accountants, lawyers, and consultants who advise them.

Inhalt

Preface

About the Author

Book Citations

PART ONE INTRODUCTION TO THE TAX LAW OF CHARITABLE GIVING

Chapter One Charitable Giving Law: Basic Concepts

§ 1.4 Statistical Profile of Charitable Sector

Chapter Two Fundamental Concerns

§ 2.1 Definition of Gift

§ 2.6 Factors Affecting Income Tax Deductibility of Charitable Gifts

Chapter Three Contributions of Money and Property

§ 3.7 Step Transaction Doctrine

PART TWO CHARITABLE GIVING IN GENERAL

Chapter Five Limitations on Annual Deductibility

§ 5.1 Overview of Law

Chapter Seven Unique Charitable Contribution Laws

§ 7.6 Easements and Other Conservation Property

§ 7.9 Retirement Plan Accounts

§ 7.28 Virtual Currency Transactions

Chapter Eight Additional Aspects of Deductible Giving

§ 8.5 Interrelationship with Business Expense Deduction

§ 8.14 Abusive Tax Transactions

PART THREE PLANNED GIVING

Chapter Nine Planned Giving and Valuation

§ 9.2 Partial Interests Law

Chapter Ten Charitable Remainder Trusts

§ 10.16 Early Terminations of Charitable Remainder Trusts

PART FIVE ADMINISTRATION OF CHARITABLE GIVING PROGRAMS

Chapter 19 Substantiation and Appraisal Law

§ 19.3 Substantiation Law for Charitable Contributions of $250 or More

§ 19.4 Substantiation Law for Noncash Charitable Contributions

Chapter 21 Special Events, Corporate Sponsorships, and Donor-Advised Funds

§ 21.4 Donor-Advised Funds

Chapter 23 Valuation Principles and Various Penalties

§ 23.1 Valuation of Property--General Principles

§ 23.3 Valuation of Securities

§ 23.4 Valuation of Other Types of Property

§ 23.6 Federal Tax Penalties

§ 23.8 Burden of Production and Procedural Law

PART EIGHT TABLES

Table of Cases

Table of IRS Revenue Rulings and Revenue Procedures

Table of IRS Private Determinations Cited in Text

Table of IRS Private Letter Rulings, Technical Advice Memoranda, and General Counsel Memoranda

Table of Cases Discussed in Bruce R. Hopkins' Nonprofit Counsel

Table of IRS Revenue Rulings Discussed in Bruce R. Hopkins' Nonprofit Counsel

Table of Private Letter Rulings and Technical Advice Memoranda Discussed in Bruce R. Hopkins' Nonprofit Counsel

About the Online Resources

Index

Textauszug

CHAPTER SEVEN
Unique Charitable Contribution Laws

• § 7.6 Easements and Other Conservation Property
  • (c) Conservation Purpose
  • (d) Requirement of Exclusivity
• § 7.9 Retirement Plan Accounts
• § 7.28 Virtual Currency Transactions
  • (a) Concept of Virtual Currency
  • (b) Government Regulation of Virtual Currency
  • (c) Federal Tax Law Concepts in General
  • (d) Charitable Giving of Virtual Currency
  • (e) IRS Enforcement Efforts

§ 7.6 EASEMENTS AND OTHER CONSERVATION PROPERTY

(c) Conservation Purpose

p. 281, note 205. Insert following existing text:

That rule notwithstanding, the charitable deduction is not jeopardized by reason of changes in the property due to upkeep or installation of one or more Americans with Disabilities Act–required accessibility ramps (Chief Couns. Adv. Mem. 2021-001).

(d) Requirement of Exclusivity

p. 284, second paragraph, first line. Insert, upheld by two courts of appeals, following Court.

p. 284, note 225. Delete text and insert:

PBBM-Rose Hill, Ltd. v. Commissioner, 900 F.3d 193 (5th Cir. 2018); TOT Property Holdings, LLC v. Commissioner, ___ F.3d ____ (11th Cir. 2021); Carroll v. Commissioner, 146 T.C. 196 (2016); Coal Property Holdings, LLC v. Commissioner, 153 T.C. 126 (2019); Railroad Holdings, LLC v. Commissioner, 119 T.C.M. (CCH) 1136 (2020); Oakhill Woods, LLC v. Commissioner, 119 T.C.M. (CCH) 1144 (2020); Oakbrook Land Holdings, LLC v. Commissioner, 119 T.C. 1351 (2020); Woodland Property Holdings, LLC v. Commissioner, 119 T.C.M. (CCH) 1361 (2020); Hewitt v. Commissioner, 119 T.C.M. (CCH) 1593 (2020); Plateau Holdings, LLC v. Commissioner, 119 T.C.M. (CCH) 1619 (2020); Lumpkin One Five Six, LLC v. Commissioner, 119 T.C.M. (CCH) 1628 (2020); Lumpkin HC v. Commissioner, 119 T.C.M. (CCH) 1631 (2020); Village at Effingham, LLC v. Commissioner, 120 T.C.M. (CCH) 15 (2020); Riverside Place, LLC v. Commissioner, 120 T.C.M. (CCH) 19 (2020); Maple Landing, LLC v. Commissioner, 120 T.C.M. (CCH) 23 (2020); Englewood Place, LLC v. Commissioner, 120 T.C.M. (CCH) 28 (202); Belair Woods, LLC v. Commissioner, 120 T.C.M. (CCH) 73 (2020); Cottonwood Place, LLC. V. Commissioner, 120 T.C.M. (CCH) 91 (2020); Red Oak Estates v. Commissioner, 120 T.C.M. (CCH) 94 (2020); Glade Creek Partners, LLC v. Commissioner, 120 T.C.M. (CCH) 285; Sells et al. v. Commissioner, 121 T.C.M. (CCH) 1072 (2021).

p. 284, note 226. Delete text and insert:

Oakbrook Land Holdings, LLC v. Commissioner, 154 T.C. 180 (2020) (on appeal). Likewise, Lumpkin One Five Six, LLC v. Commissioner, 119 T.C.M. (CCH) 1628 (2020).

p. 284. Insert as third paragraph:

The IRS's Office of Chief Counsel concluded that a conservation easement fails to satisfy the statutory requirements for a charitable deduction where the deed contains language subtracting from the donee's extinguishment proceeds the value of post-donation improvements or the post-donation increase in the value of the property attributable to improvements.226.1

§ 7.9 RETIREMENT PLAN ACCOUNTS

p. 309, note 382. Insert following existing text:

Distributions from IRAs are reported by the IRA administrator to the IRS on Form 1099-R; the donor reports the gift on the individual tax return. The IRS observed that this form does not have “special reporting” for qualified charitable distributions because IRA trustees do “not have first-hand knowledge to decide if a particular distribution meets all the requirements of” a qualified one, adding that this method of reporting “effectively balances taxpayer and trustee burdens with ensuring the IRS receives enough information to determine the correct amount of tax” (INFO 2021-0007).

§ 7.28 VIRTUAL CURRENCY TRANSACTIONS

p. 365. Change heading to VIRTUAL CURRENCY.

pp. 365–366. Delete all text under § 7.28 heading and insert:

As this chapter and previous chapters illustrate, there are many types of property (and interests in property) that can be the subject of charitable giving. This fact is also reflected in the federal tax reporting requirements, most notably Schedule M of the Form 990, which inventories 24 categories and subcategories of property, with space for “other” types of property.747 It is rare, in recent years, for new forms of property to be created. That phenomenon has occurred, however, in the case of virtual currency. (Virtual currency has yet to be explicitly recognized on the IRS's Schedule M.)

(a) Concept of Virtual Currency

Virtual currency has been in existence for a few years,748 yet is only now entering into general public consciousness and use. As the uses and extent of virtual currency multiply,749 the federal tax law is slowly developing as to its application to this latest form of property. The IRS early on staked out the fundamental position that virtual currency is not to be treated, for tax law purposes, as currency in the sense of money that functions as a medium of exchange (what the IRS terms real currency), that is, cash (e.g., U.S. dollars).750 Thus, the starting point for understanding the federal tax law approach to virtual currency is this foundational distinction between real currency and virtual currency, the latter being a form of noncash property (specifically, intangible personal property).751

The IRS defines virtual currency as a “digital representation of value that functions as a medium of exchange, a unit of account, and/or a store of value.”752 The agency added that, in some environments, this currency operates in the same manner as real currency, that is, the “coin and paper money of the United States or of any other country that is designated as legal tender, circulates, and is customarily used and accepted as a medium of exchange in the country of issuance—but it does not have legal tender status in any jurisdiction.”753

Investopedia states that virtual currency is a type of “unregulated digital currency that is only available in electronic form,” being “stored and transacted only through designated software, mobile or computer applications, or through dedicated digital wallets, and the transactions occur over the internet through secure, dedicated networks.” This source explains that a cryptocurrency “uses cryptography technology that keeps the transactions secure and authentic, and also helps to manage and control the creation of new currency units”; cryptocurrencies “exist and are transacted over dedicated blockchain-based networks that are open to the common public.” This type of currency “relies on a system of trust” and “derive[s] [its] value based on the underlying mechanism, like mining in cases of cryptocurrencies, or the backing by the underlying asset.”754 Virtual currencies are often represented in terms of tokens (or coins).755 Contemporary cryptocurrencies include Bitcoin (the most widely circulated virtual currency), Ethereum, Litecoin, XRP, and Dogecoin.756

Virtual currency that has an equivalent value in real currency, or that acts as a substitute for real currency, is referred to by the IRS as convertible virtual currency. The IRS references Bitcoin as an example of this type of currency, in that it can be “digitally traded between users and can be purchased for, or exchanged into, U.S. dollars, Euros, and other real or virtual currencies.”757

The advent of virtual currency brought new phraseologies. This fact is nicely illustrated by the sole IRS revenue ruling concerning virtual currency.758 The point of this ruling is to provide guidance as to whether a person has gross income as a result of a hard fork of a cryptocurrency that person owns; the answer depends on whether there is an airdrop of a new cryptocurrency following the hard fork.759

In this revenue ruling, the IRS states that cryptocurrency is a type of virtual currency760 that utilizes cryptography (the art of writing or solving codes) to “secure transactions that are digitally recorded on a distributed ledger, such as a blockchain.”761 As the IRS further explains in the ruling, “[d]istributed ledger technology uses independent digital systems to record, share, and synchronize transactions, the details of which are recorded in multiple places at the same time with no central data store or administrative functionality.”

The Government Accountability Office (GAO) reported that the “size of the virtual currency market is unknown due to limitations in available data.762 Nonetheless, as of April 2019, 10 major virtual currency exchanges collectively handled an average daily trading volume in Bitcoin of more than $500 million. The total market capitalization of Bitcoin is estimated to have ranged between $60 billion and $225 billion between December 2018 and October 2019. As of November 2019,...

Produkt-Details

• Erscheint lt. Verlag: 12.4.2022
• Sprache: englisch
• Themenwelt: Recht / Steuern ► EU / Internationales Recht
• Themenwelt: Recht / Steuern ► Steuern / Steuerrecht
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Planung / Organisation
• Schlagworte: Business & Management • Gemeinnützige Organisationen / Recht • Non-Profit Organizations / Law • Recht • Steuerrecht • Wirtschaft u. Management
• ISBN-10: 1-119-87356-8 / 1119873568
• ISBN-13: 978-1-119-87356-3 / 9781119873563