Life insurance and charitable giving - important tax rules
Article Abstract:
Practitioners should be aware of the complex interplay of life insurance and charitable contribution rules when planning to gift life insurance policies to charities. Taxpayers must be sure that they do not retain any incidents of ownership when transferring ownership of a policy to a charity or when naming a charity as the policy's beneficiary. Private foundations and charitable trusts investing in life insurance may have to contend with self-dealing laws, grantor trust rules and unrelated business income tax liability. Charitable reverse split dollar arrangements are an option yet untested before the IRS.
Publication Name: Taxes: The Tax Magazine
Subject: Business
ISSN: 0040-0181
Year: 1997
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Card users may deduct "cash back" contributions
Article Abstract:
The IRS has determined in Letter Ruling 9623035 that a credit card program that provides cardholders with the opportunity to designate that retailer rebates be transferred to a qualifying charitable organization will result in charitable deductions for the cardholder. The plan allows the cardholder to decide whether to make such donations and to select which charity will receive the funds. Since the rebates are a reduction in purchase price, they will not be included in the cardholder's income, but lump-sum contributions in excess of $250 will be subject to substantiation requirements.
Publication Name: Taxes: The Tax Magazine
Subject: Business
ISSN: 0040-0181
Year: 1996
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Tax traps to avoid in the ownership and transfer of life insurance policies
Article Abstract:
Insurance agents and tax practitioners should regularly review life insurance policies and all transactions involving life insurance to make sure that the tax benefits of life insurance are maximized. With proper ownership and beneficiary designations and carefully planned transfers of policy ownership, life insurance benefits can be accrued without income or transfer tax consequences. Potential problems that can make insurance benefits taxable are reviewed.
Publication Name: Taxes: The Tax Magazine
Subject: Business
ISSN: 0040-0181
Year: 1996
User Contributions:
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