Law Provides New Tax Benefits for Charitable Gifts

The Pension Protection Act of 2006 includes a number of new incentives to increase charitable giving. Three of the most important reforms are:

• Bigger Deductions for Conservation Lands
If you’ve ever considered conserving your land, now is the time to talk to The Nature Conservancy. Through the end of 2007, the donated value of conservation easements on preserve-quality land is now deductible up to 50% of Adjusted Gross Income (AGI), and the deduction can be carried over for 15 years. This is true even if the property has appreciated. For qualified farmers or ranchers under certain conditions, the deduction is 100% of AGI.

• Tax-Free Distributions from IRAs for Charitable Purposes
In 2006 and 2007, an owner of a traditional or Roth Individual Retirement Account (IRA) who is 70½ or older may give up to $100,000 out of an IRA tax-free. The gift can also count toward your minimum distribution requirement.

• Gifts from S Corporations Made Simpler
When an S Corporation makes a gift of stock or real estate, new rules allow shareholders to claim his or her pro rata share of the gift for tax purposes until the end of 2007, making the process much simpler.

If you have any questions about how these new changes might apply to your situation, please contact Trevor Law at (802) 229-4425 ext. 105 or our Gift Planning Department toll-free at (877) 812-3698.

To learn more about projects for which the Conservancy is currently fundraising, click here.