Tax Exemption Legislation Could Be Good News for Political Donors
The Republican lead Congress recently passed some new legislation – without garnering much attention at all – that could be a big boon for major donors of political organizations and groups. The bill could protect big donors from having to pay gift taxes on their large donations to these political groups.
The bill, which is headed to the senate, could make way for even more donations in coming years from nonprofit groups that are registered as 501(c) groups, especially in 2016, the country’s next presidential year. Right now, it appears that these big donors rarely pay taxes on their large donations, but as it currently stands the law does not offer specific protection from being assessed with gift taxes. That fact makes some donors a little nervous that the IRS could come knocking.
However, the new piece of legislation that Congress just recently passed would make it clear that gift taxes would not apply to groups that are registered under the Tax Code sections 501(c)4, (c)5 or (c)6. That means most of the big donor organizations that are registered under these sections would be immune from paying gift taxes.
This would obviously be good news for the many ultra-wealthy individuals who are deeply involved in politics and political movements. By having assurances that their donations would never be subject to the gift tax, the amount of money they can donate could increase even more.
Tax Forms & Publications
Tax Forms & Publications The publications listed below are located on the IRS web site and require Adobe Acrobat to view. Visit the Adobe Web Site to install the latest version of Acrobat Reader. Publication 1 Your Rights As a Taxpayer Publication 3 Armed Forces’ Tax Guide Publication 15 Circular E, Employer’s Tax Guide Publication…
Hall Of Laughter
Hall Of Laughter In memory of Steve Gardner 1958-2010 Thanks for the accounting humor and endless hours of laughter. We love you! Three Blind Mice Audit The IRS Agent uses a math joke in his audit of the three blind mice. Accounting Puppets 2 Puppets tell Accounting and Audit Jokes. Accounting Puppets Puppets tell Accounting…
The Roth Way to Riches
The Roth Way to Riches By Roy Lewis With all the recent tax-code changes, it seems a number of taxpayers have forgotten the Roth IRA. That’s a shame, because it’s far more than an ordinary retirement savings account. Roth IRAs are tax-favored accounts to which qualified taxpayers can make non-deductible, after-tax contributions. Those contributions can…
Health Savings Accounts (HSAs)
Health Savings Accounts (HSAs) Medicare legislation enacted in December 2003 provides for a prescription drug benefit that won’t exist until 2006. But also part of the new law is a provision that went into effect on January 1, 2004—the creation of the Health Savings Account (HSA). By opening an HSA, you may be allowed to…