September 26, 2008
House Passes Bill With Charity Tax Breaks, But Fate of Measure Looks Cloudy
By Grant Williams
Washington
The House of Representatives today passed a tax bill that would renew and extend several provisions affecting charitable giving, including one for older people with individual retirement accounts.
The Senate passed tax legislation with similar provisions earlier this week.
But the legislation may be doomed because the House and Senate disagree over how to pay for the overall tax package.
What’s more, the House passed its legislation in a form that differs from the Senate version. Senate leaders had warned the House to stick to the Senate version of the bill or see the legislation die as Congress attempts to adjourn as soon as possible.
One key provision in both the House and Senate legislation would allow older donors to get a tax break when they give charities money from their individual retirement accounts.
Until December 31 of last year, donors age 70 1/2 or older were able to transfer up to $100,000 to charity from their individual retirement accounts each year without paying income taxes on the money.
The legislation would renew the provision retroactive to January 1, 2008, and extend it to the end of 2009.
Additional provisions in both the House and Senate legislation would renew and extend other breaks related to charitable giving, including special deductions that businesses may take for gifts of food and donations of books and computers to schools.
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