Morrison & Foerster LLP: Funding the Family Foundation: Qualified Appreciated Stock

MorrisonFoersterLLP@placeholder.com (Morrison and Foerster LLP) — Tue, 05 Feb 2013 08:13:00 -0400

By Joy S. MacIntyre, Morrison & Foerster LLP

In an earlier post we described some of the tax benefits - and challenges - associated with donating corporate securities to a family foundation or other private foundation. On the right facts, the donor in such a case can claim a deduction equal to the full fair market value of the securities despite the fact that the donor will never be taxed on any gain

3 Year-End Giving Tips: Use All Your Deductions

ghgiddens@trustcounselpa.com (Gregory Herman-Giddens) — Wed, 26 Dec 2012 07:09:00 -0400

The holiday season hits Americans just as the tax year is coming to an end. While most people are distracted with buying gifts for their friends and families, they could be enjoying tax deductions by making smart year-end gifts:

Choose a qualified organization. When ready to make your gifts, choose organizations, charities, or research funds that qualify to receive deductible contributions. Registered

Ballard Spahr LLP: Windows of Opportunity: Year-End Gift Planning Opportunities for 2012

BallardSpahr@placeholder.com (Ballard Spahr LLP) — Wed, 14 Nov 2012 07:01:00 -0400

By the Family Wealth Management Group

Although the end of the year is several months away, it is time to think about taking advantage

McNees Wallace & Nurick LLC: Contribution to Construction Costs Supports Charitable Exemption

Wed, 17 Oct 2012 13:04:00 -0400

Power to Substitute & End of Year Planning

DavidSchoenhaar@lexisnexis.com (David R. Schoenhaar) — Thu, 04 Oct 2012 08:19:00 -0400

By: David R. Schoenhaar, Esq.*

If you are currently planning for clients to use the historically high gift tax exemption amount before the end of the year, you are becoming acutely aware that time is running out. Whether it is the appraisal companies refusing to take new business or the closing in on longer transfer timeframes needed for more complex assets, the opportunity to transfer assets is coming to a close.

For clients in this position, there may be a solution to "buy some time." The power to

Tax Treatment of Gifts, Dividends, or Loans to Employees

Wed, 26 Sep 2012 07:01:00 -0400

By Mary Howley Esq.

Although gifts are generally excluded from income, gifts from employers are generally included in income subject to certain exceptions. Payments labeled as compensation may be determined to be dividends, while payments labeled as a loan or payment for property may be determined to be compensation. This Analysis discusses factors to be taken into account in determining whether payments to employees are compensation or gifts, dividends, or loans.

Excerpt

Morrison & Foerster LLP: Making Gifts Using Defined Value Clauses: Not Necessarily Void as Against Public Policy

MorrisonFoersterLLP@placeholder.com (Morrison and Foerster LLP) — Mon, 03 Sep 2012 04:14:00 -0400

By Danielle T. Zaragoza, Esq., Morrison & Foerster LLP

Given the relatively large federal gift tax applicable exclusion amount available for taxable gifts in 2011 and 2012, many clients have made or are considering making significant gifts before the end of this year. For a client who wants to make gifts of hard-to-value assets to use his or her full exclusion amount, but not exceed

Ballard Spahr LLP: IRS Announces that Gifts to Single-Member LLCs Owned by Charitable Organizations Are Deductible

BallardSpahr@placeholder.com (Ballard Spahr LLP) — Wed, 15 Aug 2012 22:12:00 -0400

By Jean C. Hemphill and Christopher A. Jones

The IRS has published welcome, long-awaited guidance regarding the deductibility of contributions made to a single-member limited liability company (LLC) owned by a charitable organization.

For a variety of reasons, tax-exempt charitable organizations frequently establish single-member LLCs that are wholly owned and controlled by the charitable organizations. Unless a single-member LLC elects to be treated as a corporation

State Net Capitol Journal: CA State Park Donors Cry Foul

StateNet@placeholder.com (State Net) — Mon, 06 Aug 2012 11:00:00 -0400

Last month California officials revealed that the state Department of Parks and Recreation had stashed away $54 million it had not reported to the state Department of Finance. The news came as quite a surprise, especially to the groups that had generously donated to keep state parks open that the department said had to be closed to save $22 million.

"They sort of came to us under false pretenses," said Reed Holderman, executive director of the Sempervirens Fund, a nonprofit conservation group. "They cried wolf, and we responded."

Holderman's group pledged $250,000 to keep Castle Rock State Park open, and he said the parks department

Historic Estate & Gift Tax Savings Opportunities Almost Gone

DavidSchoenhaar@lexisnexis.com (David R. Schoenhaar) — Tue, 24 Jul 2012 13:19:00 -0400

By: David R. Schoenhaar, Esq.*

We are half way through 2012 and the generous tax legislation that went into effect on January 1, 2011, is scheduled to sunset on December 31, 2012, if Congress fails to act. Those who can participate in significant gift planning must act now if they plan to take advantage of the historic opportunities presented by the high gift tax exemption amount before the close of 2012.

What's At Risk?

If Congress does nothing

Properly Reporting Gifts

john.dedon@ofplaw.com (John Dedon) — Fri, 08 Jun 2012 10:17:00 -0400

As 2013 approaches, there will be a flurry of activity by wealthy individuals seeking to take advantage of a gift tax exemption of $5,120,000, that will decrease to only $1 million in 2013. Taxpayers often gift closely held business interests or real estate. The gift value of this type of non-marketable property needs to be adequately disclosed on a gift tax return.

If the gift tax return is not filed or if the gift is not properly reported, the IRS can adjust the value, even upon the taxpayer's death on the estate tax return. On the other hand, if the gift tax return is filed properly, then the Statute of Limitations starts to run. The IRS would only

McNees Wallace & Nurick LLC: Pennsylvania Supreme Court Affirms Constitutional Test Must be Met by Those Seeking Charitable Exemptions

McNees@placeholder.com (McNees Wallace & Nurick LLC) — Fri, 08 Jun 2012 04:05:00 -0400

By Randy L. Varner

In a 4-3 decision, the Pennsylvania Supreme Court, in Mesivtah Eitz Chaim of Bobov, Inc. v. Pike County Board of Assessment Appeals, No. 16 MAP 2011 (April 25, 2012) ("Mesivtah") [enhanced version available to lexis.com subscribers], held that a property owner seeking an exemption from

Ballard Spahr LLP: Back to the Future for Real Estate Tax Exemptions and PILOTs/SILOTs? Charities Must Meet HUP Test and Act 55, Pennsylvania High Court Rules

BallardSpahr@placeholder.com (Ballard Spahr LLP) — Wed, 06 Jun 2012 07:00:00 -0400

By Philip B. Korb and Wendi L. Kotzen

For charitable organizations in Pennsylvania, obtaining and preserving real estate tax exemptions just got a little more difficult.

The Pennsylvania Supreme Court has ruled that the statute intended to clarify the requirements for real estate tax exemption cannot replace the five-part test announced by the high court in 1985 because only the courts have the power to interpret the provisions of Pennsylvania's constitution.<

McNees Wallace & Nurick LLC: Tax-Advantage Charitable Giving

McNees@placeholder.com (McNees Wallace & Nurick LLC) — Fri, 18 May 2012 06:24:00 -0400

By David M. Watts, Jr.

If you are charitably inclined, there are tax-advantaged ways to make a gift to a favorite charity while enjoying the income from that gift for your lifetime. Many educational and charitable organizations offer plans that combine the benefits of an immediate income tax deduction and lifetime income from the charitable gift. In most cases, you can make the gift in cash or securities, and sometimes even with real estate. Here is a brief overview of the major types of deferred charitable gifts

The John Edwards Case - What About Gift Taxes?

ghgiddens@trustcounselpa.com (Gregory Herman-Giddens) — Mon, 14 May 2012 07:52:00 -0400

Yesterday [May 8th] I blogged about North Carolina's controversial Amendment One, which ended up passing by a large margin. I also have some thoughts about another matter in the headlines - the John Edwards trial. I have not been following the case closely, but I do know that central to the case is the money received in 2007 from wealthy donors Fred Baron and Bunny Mellon, Edward's knowledge of the donations, and whether they constituted campaign funds or simply gifts. Edwards former speechwriter Wendy

Morrison & Foerster LLP: Gift Tax Planning Opportunities: The Window Is Closing

MorrisonFoersterLLP@placeholder.com (Morrison and Foerster LLP) — Tue, 24 Apr 2012 11:58:00 -0400

By Genevieve M. Moore & Richard S. Kinyon, Morrison & Foerster LLP

As reported in this space over the last several months, there has been unprecedented upheaval in the federal transfer tax world in the last few years. One element of this was the unexpected increase in the federal gift and estate tax "applicable exclusion

New York Court of Appeals Revisits the Law of Gifting of Art or Other Objects

PeterKelly@placeholder.com (Peter K. Kelly) — Mon, 23 Apr 2012 16:02:00 -0400

How does one gift an 1,100 pound sculpture? The New York Court of Appeals recently revisited the law of gifts in the context of determining the validity of such a gift by the deceased sculptor's widow. Mirvish v. Mott, 18 N.Y.3d 510, 2012 N.Y. LEXIS 266 (2012) [enhanced version available to lexis.com subscribers].

The widow of the cubist sculptor Jacques Lipschitz purportedly made an inter vivos gift of the sculpture "The Cry," cast in 1928, to her longtime companion Biond Fury. Jacques Lipschitz died in 1973 at the age of 81, and Yulla, his wife, inherited many valuable works from her husband, including "The Cry." After Jacques' death, Yulla began a long-term relationship with Mr. Fury, and they lived together for seventeen years, until her death

Legislative Protection for Charities Caught by Ponzi Clawbacks

kphelps@diamondmccarthy.com (Kathy Bazoian Phelps) — Mon, 16 Apr 2012 09:54:00 -0400

On April 3, 2012, Minnesota Governor Mark Dayton signed a new law, Chapter 151, House File 1384, designed to protect nonprofits from having to pay back donations made by Ponzi perpetrators and other fraudulent sources. The new law actually restricts a trustee's recovery in three distinct ways.

First, it amends Minnesota Statutes § 513.41 to exempt charitable organizations from returning transfers made outside of a two year statute of limitations. The current statute of limitation on fraudulent transfer lawsuits is six years. The new statute effectively shortens the statute of limitations by amending the definition of a "transfer" to exclude any transfer more than two years before the commencement of the action, as follows:

Gift Tax and the Statute of Limitations

john.dedon@ofplaw.com (John Dedon) — Thu, 22 Mar 2012 11:22:00 -0400

A U.S. Tax Court decision filed March 6^th, Dickerson v. Commissioner [enhanced version available to lexis.com subscribers], regarding a waitress who won $10 million in a lottery, is extremely relevant for gift tax law. The waitress tried to shift the winnings to family members without incurring a taxable gift. The IRS disagreed, claiming there was a gift, and the Tax Court concurred.

The relevance is not so much the facts of

Morrison & Foerster LLP: Charities, S Corporations and UBIT: Why a Charitable Gift of S Corporation Stock May Not Be the Best Option

MorrisonFoersterLLP@placeholder.com (Morrison and Foerster LLP) — Tue, 28 Feb 2012 07:15:00 -0400

By Danielle T. Zaragoza, Esq., Morrison & Foerster LLP

Not all charitable gifts are created equal, and a charity is not required to accept any and all donations of property, especially property that may be difficult to own or liquidate in furtherance of the charity's purpose. For instance, before a charity accepts

Substantiating Charitable Deductions

john.dedon@ofplaw.com (John Dedon) — Fri, 03 Feb 2012 07:11:00 -0400

Taxpayers who claim income tax deductions for charitable contributions must request and obtain the written acknowledgement from the charity that the contribution was made. It is due by April 17, 2012, the time the income tax return is filed. Failure to have the required substantiation from the charity can void the tax deduction. Below is a sample letter.

CHARITY NAME

____[Date]_______

No Good Deed Goes Unpunished: Kent State Alumnus Withdraws Gift after Student Newspaper Raises SEC Questions

Wed, 11 Jan 2012 09:31:00 -0400

As reported by Cleveland.com/The Plain Dealer, Kent State alumnus, Jason Cope, recently withdrew his $1 million gift to Kent State University after the student newspaper brought to light Cope's investigation by the SEC.

Kentwire.com reported that Cope was associated with a financial firm that defrauded 190 investors of $8.7 million in 1999/2000. In SEC v. Milan Capital Group, Inc., 2001 U.S. Dist. LEXIS 11804 (S.D.N.Y. Aug. 14, 2001) [enhanced version available to lexis.com subscribers], Cope, along with several other defendants, was found jointly and severally liable for $19 million in illicit

Qualified Conservation Contributions under IRC § 170(h) - McLaughlin on Kaufman: Protecting Public Investment in Conservation Easements

NancyMcLaughlin@placeholder.com (Nancy A. McLaughlin) — Tue, 10 Jan 2012 12:13:00 -0400

McLaughlin on Kaufman: Protecting Public Investment in Conservation Easements

The conservation purpose of a conservation easement will be "protected in perpetuity" only if the holder has an absolute right to a share of post-extinguishment proceeds. The donor's lender cannot be given priority rights to such proceeds. So the Tax Court held in Kaufman v. Comm'r. In this Analysis, Nancy A. McLaughlin discusses the import of this decision, including the court's approach to penalties and the deductibility of cash payments made to the donee.

Federal Government Access to Real Estate Transfer Information

AdamGottlieb@placeholder.com (Adam J. Gottlieb) — Wed, 04 Jan 2012 13:58:00 -0400

By Adam J. Gottlieb

There are many positives of the information and technological advances that private citizens have enjoyed over the past several decades. For example, we can now access information at break-neck speed on our handheld phones. We can watch a movie on a very small electronic device. We can search for and find information that we could only dream of finding twenty years ago. But just as we can find all these wonderful things out there in the world using technology, so can the federal government.

The state and local governments have for many years tracked transfers of real property. Normally and for many decades, a transferor and a transferee of real property have been required to file with state or local governments certain

Gifting in 2012

DavidSchoenhaar@lexisnexis.com (David R. Schoenhaar) — Mon, 02 Jan 2012 07:49:00 -0400

By: David R. Schoenhaar, Esq.*

2011 is coming to a close and the generous tax laws that went into effect on January 1, 2011 reunifying the estate, gift and GST exemption amounts to $5,000,000 are creating renewed interests in lifetime gifting.

As discussed in a previous Blog, the sweeping legislation increased the gift tax exemption amount by $4,000,000 (from the previous exemption amount of $1,000,000), significantly expanding one's ability to make lifetime transfers without incurring a gift tax. An overlooked provision of the new law is that the exemption amounts are subject to adjustments for inflation for those years beyond 2011. This is good news for those able to make significant gifts in 2012 as the gift tax exemption amount increases an additional $120,000 to $5,120,000 starting January 1, 2012. Now a couple

Estate Practice & Elder Law Community Gifts & Charity

Morrison & Foerster LLP: Funding the Family Foundation: Qualified Appreciated Stock

3 Year-End Giving Tips: Use All Your Deductions

Ballard Spahr LLP: Windows of Opportunity: Year-End Gift Planning Opportunities for 2012

McNees Wallace & Nurick LLC: Contribution to Construction Costs Supports Charitable Exemption

Power to Substitute & End of Year Planning

Tax Treatment of Gifts, Dividends, or Loans to Employees

Morrison & Foerster LLP: Making Gifts Using Defined Value Clauses: Not Necessarily Void as Against Public Policy

Ballard Spahr LLP: IRS Announces that Gifts to Single-Member LLCs Owned by Charitable Organizations Are Deductible

State Net Capitol Journal: CA State Park Donors Cry Foul

Historic Estate & Gift Tax Savings Opportunities Almost Gone

Properly Reporting Gifts

McNees Wallace & Nurick LLC: Pennsylvania Supreme Court Affirms Constitutional Test Must be Met by Those Seeking Charitable Exemptions

Ballard Spahr LLP: Back to the Future for Real Estate Tax Exemptions and PILOTs/SILOTs? Charities Must Meet HUP Test and Act 55, Pennsylvania High Court Rules

McNees Wallace & Nurick LLC: Tax-Advantage Charitable Giving

The John Edwards Case - What About Gift Taxes?

Morrison & Foerster LLP: Gift Tax Planning Opportunities: The Window Is Closing

New York Court of Appeals Revisits the Law of Gifting of Art or Other Objects

Legislative Protection for Charities Caught by Ponzi Clawbacks

Gift Tax and the Statute of Limitations

Morrison & Foerster LLP: Charities, S Corporations and UBIT: Why a Charitable Gift of S Corporation Stock May Not Be the Best Option

Substantiating Charitable Deductions

No Good Deed Goes Unpunished: Kent State Alumnus Withdraws Gift after Student Newspaper Raises SEC Questions

Qualified Conservation Contributions under IRC § 170(h) - McLaughlin on Kaufman: Protecting Public Investment in Conservation Easements

Federal Government Access to Real Estate Transfer Information

Gifting in 2012