Charitable Contributions: Complex Tax Issues With Unique Donations

Cryptocurrency, Self-Created Assets, QCDs, Donor Advised Funds, Substantiation, Grouping Similar Items

Note: CLE credit is not offered on this program

A live 110-minute CPE webinar with interactive Q&A

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Wednesday, October 19, 2022

1:00pm-2:50pm EDT, 10:00am-11:50am PDT

(Alert: Event date has changed from 9/15/2022!)

or call 1-800-926-7926

This webinar will provide strategies and advice to maximize deductions of unique charitable contributions made by philanthropic taxpayers. Our panel of individual income tax professionals will review the rules for donor-advised funds and qualified charitable distributions (QCDs) as vehicles for making contributions, discuss the guidelines for deducting cryptocurrency, NFTs, and appreciated assets, and outline the complex rules for supporting and reporting these contributions on Form 8283 so that the deduction is allowed.

Description

Taxpayers enjoy making substantial charitable contributions to organizations of their choosing. When structured properly, these donations can provide significant tax savings as well. There are strict requirements for non-cash contributions to qualify as a charitable deduction.

These requirements vary based on the type of property donated, the recipient organization, and the deductible value of the contribution. Self-created property that generates ordinary income in the holder's hands can have a high fair market value, but the tax deduction is limited to the cost of the materials. This can create issues when donating self-created NFTs, for example.

Correctly meeting stringent reporting requirements is most critical for more significant contributions. Small donations of less than $250 require adequate records; IRC Section 170(f)(8) requires support from a receipt and a contemporaneous written acknowledgment (CWA) that adheres to IRS guidelines.

Moving up the scale, the IRS requires a "written qualified appraisal from a qualified appraiser" for most noncash contributions greater than $5,000. Taxpayers donating artwork valued at $20,000 or more or other donations of $500,000 or more must submit a completed appraisal with their income tax returns. Numerous cases have disallowed otherwise bona fide contributions for failure to meet the appraisal or CWA requirements.

Listen as our panel of individual income tax professionals reviews the rules for donor-advised funds and QCDs as vehicles for making contributions, discusses the guidelines for deducting cryptocurrency, NFTs, and appreciated assets, and outlines the complex rules for supporting and reporting these contributions on Form 8283 so that the deduction is allowed.

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Outline

  1. Qualified charitable distributions
  2. Donor-advised funds
  3. Cryptocurrency and NFTs
  4. Self-created assets
  5. Appreciated assets
  6. Other unique contributions
  7. Substantiating charitable contributions
  8. Appraisals
  9. Preparing Form 8283, Noncash Charitable Contributions
  10. Recent cases
  11. Strategies

Benefits

The panel will cover these and other critical issues:

  • How to value and deduct cryptocurrency donations to charities
  • The rules for reporting and deducting specific self-created assets
  • Using a donor-advised fund to maximize the tax benefits of charitable donations
  • Grouping similar items on Form 8283, Noncash Charitable Contributions, for large non-cash donations to charity

Faculty

Borden, Aaron
Aaron Borden, J.D., CPA

Managing Director
Grant Thornton

Mr. Borden has more than 15 years’ experience finding solutions to complex tax problems for his clients....  |  Read More

McLucas, Charles
Charles J. McLucas, Jr., CPA, PFS

Founder
Charitable Trust Administrators

Mr. McLucas focuses on charitable trust administration work and estate planning for high net worth individuals. He and...  |  Read More

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