Internal Revenue Code:Sec. 170. Charitable, etc., contributions and gifts
From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.
From TaxAlmanac
Contents |
Location in Internal Revenue Code
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter B - Computation of Taxable Income
PART VI - ITEMIZED DEDUCTIONS FOR INDIVIDUALS AND CORPORATIONS
Statute
Sec. 170. Charitable, etc., contributions and gifts
(a) Allowance of deduction
(1) General rule
There shall be allowed as a deduction any charitable
contribution (as defined in subsection (c)) payment of which is
made within the taxable year. A charitable contribution shall be
allowable as a deduction only if verified under regulations
prescribed by the Secretary.
(2) Corporations on accrual basis
In the case of a corporation reporting its taxable income on
the accrual basis, if -
(A) the board of directors authorizes a charitable
contribution during any taxable year, and
(B) payment of such contribution is made after the close of
such taxable year and on or before the 15th day of the third
month following the close of such taxable year,
then the taxpayer may elect to treat such contribution as paid
during such taxable year. The election may be made only at the
time of the filing of the return for such taxable year, and shall
be signified in such manner as the Secretary shall by regulations
prescribe.
(3) Future interests in tangible personal property
For purposes of this section, payment of a charitable
contribution which consists of a future interest in tangible
personal property shall be treated as made only when all
intervening interests in, and rights to the actual possession or
enjoyment of, the property have expired or are held by persons
other than the taxpayer or those standing in a relationship to
the taxpayer described in section 267(b) or 707(b). For purposes
of the preceding sentence, a fixture which is intended to be
severed from the real property shall be treated as tangible
personal property.
(b) Percentage limitations
(1) Individuals
In the case of an individual, the deduction provided in
subsection (a) shall be limited as provided in the succeeding
subparagraphs.
(A) General rule
Any charitable contribution to -
(i) a church or a convention or association of churches,
(ii) an educational organization which normally maintains a
regular faculty and curriculum and normally has a regularly
enrolled body of pupils or students in attendance at the
place where its educational activities are regularly carried
on,
(iii) an organization the principal purpose or functions of
which are the providing of medical or hospital care or
medical education or medical research, if the organization is
a hospital, or if the organization is a medical research
organization directly engaged in the continuous active
conduct of medical research in conjunction with a hospital,
and during the calendar year in which the contribution is
made such organization is committed to spend such
contributions for such research before January 1 of the fifth
calendar year which begins after the date such contribution
is made,
(iv) an organization which normally receives a substantial
part of its support (exclusive of income received in the
exercise or performance by such organization of its
charitable, educational, or other purpose or function
constituting the basis for its exemption under section
501(a)) from the United States or any State or political
subdivision thereof or from direct or indirect contributions
from the general public, and which is organized and operated
exclusively to receive, hold, invest, and administer property
and to make expenditures to or for the benefit of a college
or university which is an organization referred to in clause
(ii) of this subparagraph and which is an agency or
instrumentality of a State or political subdivision thereof,
or which is owned or operated by a State or political
subdivision thereof or by an agency or instrumentality of one
or more States or political subdivisions,
(v) a governmental unit referred to in subsection (c)(1),
(vi) an organization referred to in subsection (c)(2) which
normally receives a substantial part of its support
(exclusive of income received in the exercise or performance
by such organization of its charitable, educational, or other
purpose or function constituting the basis for its exemption
under section 501(a)) from a governmental unit referred to in
subsection (c)(1) or from direct or indirect contributions
from the general public,
(vii) a private foundation described in subparagraph (E),
or
(viii) an organization described in section 509(a)(2) or
(3),
shall be allowed to the extent that the aggregate of such
contributions does not exceed 50 percent of the taxpayer's
contribution base for the taxable year.
(B) Other contributions
Any charitable contribution other than a charitable
contribution to which subparagraph (A) applies shall be allowed
to the extent that the aggregate of such contributions does not
exceed the lesser of -
(i) 30 percent of the taxpayer's contribution base for the
taxable year, or
(ii) the excess of 50 percent of the taxpayer's
contribution base for the taxable year over the amount of
charitable contributions allowable under subparagraph (A)
(determined without regard to subparagraph (C)).
If the aggregate of such contributions exceeds the limitation
of the preceding sentence, such excess shall be treated (in a
manner consistent with the rules of subsection (d)(1)) as a
charitable contribution (to which subparagraph (A) does not
apply) in each of the 5 succeeding taxable years in order of
time.
(C) Special limitation with respect to contributions described
in subparagraph (A) of certain capital gain property
(i) In the case of charitable contributions described in
subparagraph (A) of capital gain property to which subsection
(e)(1)(B) does not apply, the total amount of contributions
of such property which may be taken into account under
subsection (a) for any taxable year shall not exceed 30
percent of the taxpayer's contribution base for such year.
For purposes of this subsection, contributions of capital
gain property to which this subparagraph applies shall be
taken into account after all other charitable contributions
(other than charitable contributions to which subparagraph
(D) applies).
(ii) If charitable contributions described in subparagraph
(A) of capital gain property to which clause (i) applies
exceeds 30 percent of the taxpayer's contribution base for
any taxable year, such excess shall be treated, in a manner
consistent with the rules of subsection (d)(1), as a
charitable contribution of capital gain property to which
clause (i) applies in each of the 5 succeeding taxable years
in order of time.
(iii) At the election of the taxpayer (made at such time
and in such manner as the Secretary prescribes by
regulations), subsection (e)(1) shall apply to all
contributions of capital gain property (to which subsection
(e)(1)(B) does not otherwise apply) made by the taxpayer
during the taxable year. If such an election is made,
clauses (i) and (ii) shall not apply to contributions of
capital gain property made during the taxable year, and, in
applying subsection (d)(1) for such taxable year with respect
to contributions of capital gain property made in any prior
contribution year for which an election was not made under
this clause, such contributions shall be reduced as if
subsection (e)(1) had applied to such contributions in the
year in which made.
(iv) For purposes of this paragraph, the term ''capital
gain property'' means, with respect to any contribution, any
capital asset the sale of which at its fair market value at
the time of the contribution would have resulted in gain
which would have been long-term capital gain. For purposes
of the preceding sentence, any property which is property
used in the trade or business (as defined in section 1231(b))
shall be treated as a capital asset.
(D) Special limitation with respect to contributions of capital
gain property to organizations not described in
subparagraph (A)
(i) In general
In the case of charitable contributions (other than
charitable contributions to which subparagraph (A) applies)
of capital gain property, the total amount of such
contributions of such property taken into account under
subsection (a) for any taxable year shall not exceed the
lesser of -
(I) 20 percent of the taxpayer's contribution base for
the taxable year, or
(II) the excess of 30 percent of the taxpayer's
contribution base for the taxable year over the amount of
the contributions of capital gain property to which
subparagraph (C) applies.
For purposes of this subsection, contributions of capital gain
property to which this subparagraph applies shall be taken
into account after all other charitable contributions.
(ii) Carryover
If the aggregate amount of contributions described in
clause (i) exceeds the limitation of clause (i), such excess
shall be treated (in a manner consistent with the rules of
subsection (d)(1)) as a charitable contribution of capital
gain property to which clause (i) applies in each of the 5
succeeding taxable years in order of time.
(E) Contributions of qualified conservation contributions.--
(i) In general.--Any qualified conservation
contribution (as defined in subsection (h)(1))
shall be allowed to the extent the aggregate of
such contributions does not exceed the excess of
50 percent of the taxpayer's contribution base
over the amount of all other charitable
contributions allowable under this paragraph.
(ii) Carryover.--If the aggregate amount of
contributions described in clause (i) exceeds the
limitation of clause (i), such excess shall be
treated (in a manner consistent with the rules of
subsection (d)(1)) as a charitable contribution to
which clause (i) applies in each of the 15
succeeding years in order of time.
(iii) <<NOTE: Applicability.>> Coordination
with other subparagraphs.--For purposes of
applying this subsection and subsection (d)(1),
contributions described in clause (i) shall not be
treated as described in subparagraph (A), (B),
(C), or (D) and such subparagraphs shall apply
without regard to such contributions.
(iv) <<NOTE: Applicability.>> Special rule
for contribution of property used in agriculture
or livestock production.--
(I) In general.--If the individual
is a qualified farmer or rancher for the
taxable year for which the contribution
is made, clause (i) shall be applied by
substituting `100 percent' for `50
percent'.
(II) Exception.--Subclause (I)
shall not apply to any contribution of
property made after the date of the
enactment of this subparagraph which is
used in agriculture or livestock
production (or available for such
production) unless such contribution is
subject to a restriction that such
property remain available for such
production. This subparagraph shall be
applied separately with respect to
property to which subclause (I) does not
apply by reason of the preceding
sentence prior to its application to
property to which subclause (I) does
apply.
(v) Definition.--For purposes of clause
(iv), the term `qualified farmer or rancher' means
a taxpayer whose gross income from the trade or
business of farming (within the meaning of section
2032A(e)(5)) is greater than 50 percent of the
taxpayer's gross income for the taxable year.
(vi) Termination.--This subparagraph shall
not apply to any contribution made in taxable
years beginning after December 31, 2007.
(F) Certain private foundations
The private foundations referred to in subparagraph (A)(vii)
and subsection (e)(1)(B) are -
(i) a private operating foundation (as defined in section
4942(j)(3)),
(ii) any other private foundation (as defined in section
509(a)) which, not later than the 15th day of the third month
after the close of the foundation's taxable year in which
contributions are received, makes qualifying distributions
(as defined in section 4942(g), without regard to paragraph
(3) thereof), which are treated, after the application of
section 4942(g)(3), as distributions out of corpus (in
accordance with section 4942(h)) in an amount equal to 100
percent of such contributions, and with respect to which the
taxpayer obtains adequate records or other sufficient
evidence from the foundation showing that the foundation made
such qualifying distributions, and
(iii) a private foundation all of the contributions to
which are pooled in a common fund and which would be
described in section 509(a)(3) but for the right of any
substantial contributor (hereafter in this clause called
''donor'') or his spouse to designate annually the
recipients, from among organizations described in paragraph
(1) of section 509(a), of the income attributable to the
donor's contribution to the fund and to direct (by deed or by
will) the payment, to an organization described in such
paragraph (1), of the corpus in the common fund attributable
to the donor's contribution; but this clause shall apply only
if all of the income of the common fund is required to be
(and is) distributed to one or more organizations described
in such paragraph (1) not later than the 15th day of the
third month after the close of the taxable year in which the
income is realized by the fund and only if all of the corpus
attributable to any donor's contribution to the fund is
required to be (and is) distributed to one or more of such
organizations not later than one year after his death or
after the death of his surviving spouse if she has the right
to designate the recipients of such corpus.
(G) Contribution base defined
For purposes of this section, the term ''contribution base''
means adjusted gross income (computed without regard to any net
operating loss carryback to the taxable year under section
172).
(2) Corporations.--In the case of a corporation--
(A) In general.--The total deductions under
subsection (a) for any taxable year (other than for
contributions to which subparagraph (B) applies) shall
not exceed 10 percent of the taxpayer's taxable income.
(B) Qualified conservation contributions by
certain corporate farmers and ranchers.--
(i) In general.--Any qualified conservation
contribution (as defined in subsection (h)(1))--
(I) which is made by a corporation
which, for the taxable year during which
the contribution is made, is a qualified
farmer or rancher (as defined in
paragraph (1)(E)(v)) and the stock of
which is not readily tradable on an
established securities market at any
time during such year, and
(II) which, in the case of
contributions made after the date of the
enactment of this subparagraph, is a
contribution of property which is used
in agriculture or livestock production
(or available for such production) and
which is subject to a restriction that
such property remain available for such
production,
shall be allowed to the extent the aggregate of
such contributions does not exceed the excess of
the taxpayer's taxable income over the amount of
charitable contributions allowable under
subparagraph (A).
(ii) <<NOTE: Applicability.>> Carryover.--If
the aggregate amount of contributions described in
clause (i) exceeds the limitation of clause (i),
such excess shall be treated (in a manner
consistent with the rules of subsection (d)(2)) as
a charitable contribution to which clause (i)
applies in each of the 15 succeeding years in
order of time.
(iii) Termination.--This subparagraph shall
not apply to any contribution made in taxable
years beginning after December 31, 2007.
(C) Taxable income.--For purposes of this
paragraph, taxable income shall be computed without
regard to--
(i) this section,
(ii) part VIII (except section 248),
(iii) any net operating loss carryback to
the taxable year under section 172,
(iv) section 199, and
(v) any capital loss carryback to the
taxable year under section 1212(a)(1).
(c) Charitable contribution defined
For purposes of this section, the term ''charitable
contribution'' means a contribution or gift to or for the use of -
(1) A State, a possession of the United States, or any
political subdivision of any of the foregoing, or the United
States or the District of Columbia, but only if the contribution
or gift is made for exclusively public purposes.
(2) A corporation, trust, or community chest, fund, or
foundation -
(A) created or organized in the United States or in any
possession thereof, or under the law of the United States, any
State, the District of Columbia, or any possession of the
United States;
(B) organized and operated exclusively for religious,
charitable, scientific, literary, or educational purposes, or
to foster national or international amateur sports competition
(but only if no part of its activities involve the provision of
athletic facilities or equipment), or for the prevention of
cruelty to children or animals;
(C) no part of the net earnings of which inures to the
benefit of any private shareholder or individual; and
(D) which is not disqualified for tax exemption under section
501(c)(3) by reason of attempting to influence legislation, and
which does not participate in, or intervene in (including the
publishing or distributing of statements), any political
campaign on behalf of (or in opposition to) any candidate for
public office.
A contribution or gift by a corporation to a trust, chest, fund,
or foundation shall be deductible by reason of this paragraph
only if it is to be used within the United States or any of its
possessions exclusively for purposes specified in subparagraph
(B). Rules similar to the rules of section 501(j) shall apply for
purposes of this paragraph.
(3) A post or organization of war veterans, or an auxiliary
unit or society of, or trust or foundation for, any such post or
organization -
(A) organized in the United States or any of its possessions,
and
(B) no part of the net earnings of which inures to the
benefit of any private shareholder or individual.
(4) In the case of a contribution or gift by an individual, a
domestic fraternal society, order, or association, operating
under the lodge system, but only if such contribution or gift is
to be used exclusively for religious, charitable, scientific,
literary, or educational purposes, or for the prevention of
cruelty to children or animals.
(5) A cemetery company owned and operated exclusively for the
benefit of its members, or any corporation chartered solely for
burial purposes as a cemetery corporation and not permitted by
its charter to engage in any business not necessarily incident to
that purpose, if such company or corporation is not operated for
profit and no part of the net earnings of such company or
corporation inures to the benefit of any private shareholder or
individual.
For purposes of this section, the term ''charitable contribution''
also means an amount treated under subsection (g) as paid for the
use of an organization described in paragraph (2), (3), or (4).
(d) Carryovers of excess contributions
(1) Individuals
(A) In general
In the case of an individual, if the amount of charitable
contributions described in subsection (b)(1)(A) payment of
which is made within a taxable year (hereinafter in this
paragraph referred to as the ''contribution year'') exceeds 50
percent of the taxpayer's contribution base for such year, such
excess shall be treated as a charitable contribution described
in subsection (b)(1)(A) paid in each of the 5 succeeding
taxable years in order of time, but, with respect to any such
succeeding taxable year, only to the extent of the lesser of
the two following amounts:
(i) the amount by which 50 percent of the taxpayer's
contribution base for such succeeding taxable year exceeds
the sum of the charitable contributions described in
subsection (b)(1)(A) payment of which is made by the taxpayer
within such succeeding taxable year (determined without
regard to this subparagraph) and the charitable contributions
described in subsection (b)(1)(A) payment of which was made
in taxable years before the contribution year which are
treated under this subparagraph as having been paid in such
succeeding taxable year; or
(ii) in the case of the first succeeding taxable year, the
amount of such excess, and in the case of the second, third,
fourth, or fifth succeeding taxable year, the portion of such
excess not treated under this subparagraph as a charitable
contribution described in subsection (b)(1)(A) paid in any
taxable year intervening between the contribution year and
such succeeding taxable year.
(B) Special rule for net operating loss carryovers
In applying subparagraph (A), the excess determined under
subparagraph (A) for the contribution year shall be reduced to
the extent that such excess reduces taxable income (as computed
for purposes of the second sentence of section 172(b)(2)) and
increases the net operating loss deduction for a taxable year
succeeding the contribution year.
(2) Corporations
(A) In general
Any contribution made by a corporation in a taxable year
(hereinafter in this paragraph referred to as the
''contribution year'') in excess of the amount deductible for
such year under subsection (b)(2)(A) shall be deductible for each
of the 5 succeeding taxable years in order of time, but only to
the extent of the lesser of the two following amounts: (i) the
excess of the maximum amount deductible for such succeeding
taxable year under subsection (b)(2)(A) over the sum of the
contributions made in such year plus the aggregate of the
excess contributions which were made in taxable years before
the contribution year and which are deductible under this
subparagraph for such succeeding taxable year; or (ii) in the
case of the first succeeding taxable year, the amount of such
excess contribution, and in the case of the second, third,
fourth, or fifth succeeding taxable year, the portion of such
excess contribution not deductible under this subparagraph for
any taxable year intervening between the contribution year and
such succeeding taxable year.
(B) Special rule for net operating loss carryovers
For purposes of subparagraph (A), the excess of -
(i) the contributions made by a corporation in a taxable
year to which this section applies, over
(ii) the amount deductible in such year under the
limitation in subsection (b)(2)(A),
shall be reduced to the extent that such excess reduces taxable
income (as computed for purposes of the second sentence of
section 172(b)(2)(A)) and increases a net operating loss carryover
under section 172 to a succeeding taxable year.
(e) Certain contributions of ordinary income and capital gain
property
(1) General rule
The amount of any charitable contribution of property otherwise
taken into account under this section shall be reduced by the sum
of -
(A) the amount of gain which would not have been long-term
capital gain (determined without regard
to section 1221(b)(3)) if the property contributed had been sold by the
taxpayer at its fair market value (determined at the time of
such contribution), and
(B) in the case of a charitable contribution -
(i) of tangible personal property--
(I) if the use by the donee is
unrelated to the purpose or function
constituting the basis for its exemption
under section 501 (or, in the case of a
governmental unit, to any purpose or
function described in subsection (c)),
or
(II) which is applicable property
(as defined in paragraph (7)(C)) which
is sold, exchanged, or otherwise
disposed of by the donee before the last
day of the taxable year in which the
contribution was made and with respect
to which the donee has not made a
certification in accordance with
paragraph (7)(D),
(ii) to or for the use of a private foundation (as defined
in section 509(a)), other than a private foundation described
in subsection (b)(1)(E),
(iii) of any patent, copyright (other than a copyright
described in section 1221(a)(3) or 1231(b)(1)(C)), trademark,
trade name, trade secret, know-how, software (other than
software described in section 197(e)(3)(A)(i)), or similar
property, or applications or registrations of such property,
the amount of gain which would have been long-term capital gain
if the property contributed had been sold by the taxpayer at
its fair market value (determined at the time of such
contribution), or
(iv) of any taxidermy property which is
contributed by the person who prepared, stuffed,
or mounted the property or by any person who paid
or incurred the cost of such preparation, stuffing, or mounting,
For purposes of applying this paragraph (other than in the case
of gain to which section 617(d)(1), 1245(a), 1250(a), 1252(a), or
1254(a) applies), property which is property used in the trade or
business (as defined in section 1231(b)) shall be treated as a
capital asset. For purposes of applying this paragraph in the
case of a charitable contribution of stock in an S corporation,
rules similar to the rules of section 751 shall apply in
determining whether gain on such stock would have been long-term
capital gain if such stock were sold by the taxpayer.
(2) Allocation of basis
For purposes of paragraph (1), in the case of a charitable
contribution of less than the taxpayer's entire interest in the
property contributed, the taxpayer's adjusted basis in such
property shall be allocated between the interest contributed and
any interest not contributed in accordance with regulations
prescribed by the Secretary.
(3) Special rule for certain contributions of inventory and other
property
(A) Qualified contributions
For purposes of this paragraph, a qualified contribution
shall mean a charitable contribution of property described in
paragraph (1) or (2) of section 1221(a), by a corporation
(other than a corporation which is an S corporation) to an
organization which is described in section 501(c)(3) and is
exempt under section 501(a) (other than a private foundation,
as defined in section 509(a), which is not an operating
foundation, as defined in section 4942(j)(3)), but only if -
(i) the use of the property by the donee is related to the
purpose or function constituting the basis for its exemption
under section 501 and the property is to be used by the donee
solely for the care of the ill, the needy, or infants;
(ii) the property is not transferred by the donee in
exchange for money, other property, or services;
(iii) the taxpayer receives from the donee a written
statement representing that its use and disposition of the
property will be in accordance with the provisions of clauses
(i) and (ii); and
(iv) in the case where the property is subject to
regulation under the Federal Food, Drug, and Cosmetic Act, as
amended, such property must fully satisfy the applicable
requirements of such Act and regulations promulgated
thereunder on the date of transfer and for one hundred and
eighty days prior thereto.
(B) Amount of reduction
The reduction under paragraph (1)(A) for any qualified
contribution (as defined in subparagraph (A)) shall be no
greater than the sum of -
(i) one-half of the amount computed under paragraph (1)(A)
(computed without regard to this paragraph), and
(ii) the amount (if any) by which the charitable
contribution deduction under this section for any qualified
contribution (computed by taking into account the amount
determined in clause (i), but without regard to this clause)
exceeds twice the basis of such property.
(C) Special rule for contributions of food
inventory.--
(i) General rule.--
In <<NOTE: Applicability.>> the case of a
charitable contribution of food from any trade or
business of the taxpayer, this paragraph shall be
applied--
(I) without regard to whether the
contribution is made by a C corporation,
and
(II) only to food that is
apparently wholesome food.
(ii) Limitation.--In the case of a taxpayer
other than a C corporation, the aggregate amount
of such contributions for any taxable year which
may be taken into account under this section shall
not exceed 10 percent of the taxpayer's aggregate
net income for such taxable year from all trades
or businesses from which such contributions were
made for such year, computed without regard to
this section.
(iii) Apparently wholesome food.--For
purposes of this subparagraph, the term
`apparently wholesome food' has the meaning given
to such term by section 22(b)(2) of the Bill
Emerson Good Samaritan Food Donation Act (42
U.S.C. 1791(b)(2)), as in effect on the date of
the enactment of this subparagraph.
(iv) Termination.--This subparagraph shall
not apply to contributions made after December 31,
2007.
(D) Special rule for contributions of book
inventory to public schools.--
(i) Contributions
of <<NOTE: Applicability.>> book inventory.--In
determining whether a qualified book contribution
is a qualified contribution, subparagraph (A)
shall be applied without regard to whether the
donee is an organization
described in the matter preceding clause (i) of
subparagraph (A).
(ii) Qualified book contribution.--For
purposes of this paragraph, the term `qualified
book contribution' means a charitable contribution
of books to a public school which is an
educational organization described in subsection
(b)(1)(A)(ii) and which provides elementary
education or secondary education (kindergarten
through grade 12).
(iii) Certification by donee.--Subparagraph
(A) shall not apply to any contribution unless (in
addition to the certifications required by
subparagraph (A) (as modified by this
subparagraph)), the donee certifies in writing
that--
(I) the books are suitable, in
terms of currency, content, and
quantity, for use in the donee's
educational programs, and
(II) the donee will use the books
in its educational programs.
(iv) Termination.--This subparagraph shall
not apply to contributions made after December 31,
2007.
(E) This paragraph shall not apply to so much of the amount
of the gain described in paragraph (1)(A) which would be
long-term capital gain but for the application of sections 617,
1245, 1250, or 1252.
(4) Special rule for contributions of scientific property used
for research
(A) Limit on reduction
In the case of a qualified research contribution, the
reduction under paragraph (1)(A) shall be no greater than the
amount determined under paragraph (3)(B).
(B) Qualified research contributions
For purposes of this paragraph, the term ''qualified research
contribution'' means a charitable contribution by a corporation
of tangible personal property described in paragraph (1) of
section 1221(a), but only if -
(i) the contribution is to an organization described in
subparagraph (A) or subparagraph (B) of section 41(e)(6),
(ii) the property is constructed or assembled by the taxpayer,
(iii) the contribution is made not later than 2 years after
the date the construction or assembly of the property is
substantially completed,
(iv) the original use of the property is by the donee,
(v) the property is scientific equipment or apparatus
substantially all of the use of which by the donee is for
research or experimentation (within the meaning of section
174), or for research training, in the United States in
physical or biological sciences,
(vi) the property is not transferred by the donee in
exchange for money, other property, or services, and
(vii) the taxpayer receives from the donee a written
statement representing that its use and disposition of the
property will be in accordance with the provisions of clauses
(v) and (vi).
(C) Construction of property by taxpayer
For purposes of this paragraph, property shall be treated as
constructed by the taxpayer only if the cost of the parts used
in the construction of such property (other than parts
manufactured by the taxpayer or a related person) do not exceed
50 percent of the taxpayer's basis in such property.
(D) Corporation
For purposes of this paragraph, the term ''corporation''
shall not include -
(i) an S corporation,
(ii) a personal holding company (as defined in section
542), and
(iii) a service organization (as defined in section
414(m)(3)).
(5) Special rule for contributions of stock for which market
quotations are readily available
(A) In general
Subparagraph (B)(ii) of paragraph (1) shall not apply to any
contribution of qualified appreciated stock.
(B) Qualified appreciated stock
Except as provided in subparagraph (C), for purposes of this
paragraph, the term ''qualified appreciated stock'' means any
stock of a corporation -
(i) for which (as of the date of the contribution) market
quotations are readily available on an established securities
market, and
(ii) which is capital gain property (as defined in
subsection (b)(1)(C)(iv)).
(C) Donor may not contribute more than 10 percent of stock of
corporation
(i) In general
In the case of any donor, the term ''qualified appreciated
stock'' shall not include any stock of a corporation
contributed by the donor in a contribution to which paragraph
(1)(B)(ii) applies (determined without regard to this
paragraph) to the extent that the amount of the stock so
contributed (when increased by the aggregate amount of all
prior such contributions by the donor of stock in such
corporation) exceeds 10 percent (in value) of all of the
outstanding stock of such corporation.
(ii) Special rule
For purposes of clause (i), an individual shall be treated
as making all contributions made by any member of his family
(as defined in section 267(c)(4)).
(6) Special rule for contributions of computer technology and
equipment for educational purposes
(A) Limit on reduction
In the case of a qualified computer contribution, the
reduction under paragraph (1)(A) shall be no greater than the
amount determined under paragraph (3)(B).
(B) Qualified computer contribution
For purposes of this paragraph, the term ''qualified computer
contribution'' means a charitable contribution by a corporation
of any computer technology or equipment, but only if -
(i) the contribution is to -
(I) an educational organization described in subsection
(b)(1)(A)(ii),
(II) an entity described in section 501(c)(3) and exempt
from tax under section 501(a) (other than an entity
described in subclause (I)) that is organized primarily for
purposes of supporting elementary and secondary education,
or
(III) a public library (within the meaning of section
213(2)(A) of the Library Services and Technology Act (20
U.S.C. 9122(2)(A)), as in effect on the date of the
enactment of the Community Renewal Tax Relief Act of 2000),
(FOOTNOTE 1) established and maintained by an entity
described in subsection (c)(1),
(FOOTNOTE 1) So in original. The word ''2000'' probably should
be followed by a closing parenthesis.
(ii) the contribution is made not later than 3 years after
the date the taxpayer acquired the property (or in the case
of property constructed or assembled by the taxpayer, the date
the construction or assembling of the property is substantially
completed),
(iii) the original use of the property is by the donor or
the donee,
(iv) substantially all of the use of the property by the
donee is for use within the United States for educational
purposes that are related to the purpose or function of the
donee,
(v) the property is not transferred by the donee in
exchange for money, other property, or services, except for
shipping, installation and transfer costs,
(vi) the property will fit productively into the donee's
education plan,
(vii) the donee's use and disposition of the property will
be in accordance with the provisions of clauses (iv) and (v),
and
(viii) the property meets such standards, if any, as the
Secretary may prescribe by regulation to assure that the
property meets minimum functionality and suitability
standards for educational purposes.
(C) Contribution to private foundation
A contribution by a corporation of any computer technology or
equipment to a private foundation (as defined in section 509)
shall be treated as a qualified computer contribution for
purposes of this paragraph if -
(i) the contribution to the private foundation satisfies
the requirements of clauses (ii) and (v) of subparagraph (B),
and
(ii) within 30 days after such contribution, the private
foundation -
(I) contributes the property to a donee described in
clause (i) of subparagraph (B) that satisfies the
requirements of clauses (iv) through (vii) of subparagraph
(B), and
(II) notifies the donor of such contribution.
(D) Donations of property reacquired by manufacturer
In the case of property which is reacquired by the person who
constructed or assembled the property -
(i) subparagraph (B)(ii) shall be applied to a contribution
of such property by such person by taking into account the
date that the original construction or assembly of the property
was substantially completed, and
(ii) subparagraph (B)(iii) shall not apply to such
contribution.
(E) Special rule relating to construction of property
For the purposes of this paragraph, the rules of paragraph
(4)(C) shall apply.
(F) Definitions
For the purposes of this paragraph -
(i) Computer technology or equipment
The term ''computer technology or equipment'' means
computer software (as defined by section 197(e)(3)(B)),
computer or peripheral equipment (as defined by section
168(i)(2)(B)), and fiber optic cable related to computer use.
(ii) Corporation
The term ''corporation'' has the meaning given to such term
by paragraph (4)(D).
(G) Termination
This paragraph shall not apply to any contribution made
during any taxable year beginning after December 31, 2007.
(7) Recapture of deduction on certain dispositions of
exempt use property.--
(A) In general.--In the case of an applicable
disposition of applicable property, there shall be
included in the income of the donor of such property for
the taxable year of such donor in which the applicable
disposition occurs an amount equal to the excess (if
any) of--
(i) the amount of the deduction allowed to
the donor under this section with respect to such
property, over
(ii) the donor's basis in such property at
the time such property was contributed.
(B) Applicable disposition.--For purposes of this
paragraph, the term `applicable disposition' means any
sale, exchange, or other disposition by the donee of
applicable property--
(i) after the last day of the taxable year
of the donor in which such property was
contributed, and
(ii) before the last day of the 3-year
period beginning on the date of the contribution
of such property,
unless the donee makes a certification in accordance
with subparagraph (D).
(C) Applicable property.--For purposes of this
paragraph, the term `applicable property' means
charitable deduction property (as defined in section
6050L(a)(2)(A))--
(i) which is tangible personal property the
use of which is identified by the donee as related
to the purpose or function constituting the basis
of the donee's exemption under section 501, and
(ii) for which a deduction in excess of the
donor's basis is allowed.
(D) Certification.--A certification meets the
requirements of this subparagraph if it is a written
statement which is signed under penalty of perjury by an
officer of the donee organization and--
(i) which--
(I) certifies that the use of the
property by the donee was substantial
and relatedto the purpose or function
constituting the basis for the donee's
exemption under section 501, and
(II) describes how the property
was used and how such use furthered such
purpose or function, or
(ii) which--
(I) states the intended use of the
property by the donee at the time of the
contribution, and
(II) certifies that such intended
use has become impossible or infeasible
to implement.
(f) Disallowance of deduction in certain cases and special rules
(1) In general
No deduction shall be allowed under this section for a
contribution to or for the use of an organization or trust
described in section 508(d) or 4948(c)(4) subject to the
conditions specified in such sections.
(2) Contributions of property placed in trust
(A) Remainder interest
In the case of property transferred in trust, no deduction
shall be allowed under this section for the value of a
contribution of a remainder interest unless the trust is a
charitable remainder annuity trust or a charitable remainder
unitrust (described in section 664), or a pooled income fund
(described in section 642(c)(5)).
(B) Income interests, etc.
No deduction shall be allowed under this section for the
value of any interest in property (other than a remainder
interest) transferred in trust unless the interest is in the
form of a guaranteed annuity or the trust instrument specifies
that the interest is a fixed percentage distributed yearly of
the fair market value of the trust property (to be determined
yearly) and the grantor is treated as the owner of such
interest for purposes of applying section 671. If the donor
ceases to be treated as the owner of such an interest for
purposes of applying section 671, at the time the donor ceases
to be so treated, the donor shall for purposes of this chapter
be considered as having received an amount of income equal to
the amount of any deduction he received under this section for
the contribution reduced by the discounted value of all amounts
of income earned by the trust and taxable to him before the
time at which he ceases to be treated as the owner of the
interest. Such amounts of income shall be discounted to the
date of the contribution. The Secretary shall prescribe such
regulations as may be necessary to carry out the purposes of
this subparagraph.
(C) Denial of deduction in case of payments by certain trusts
In any case in which a deduction is allowed under this
section for the value of an interest in property described in
subparagraph (B), transferred in trust, no deduction shall be
allowed under this section to the grantor or any other person
for the amount of any contribution made by the trust with
respect to such interest.
(D) Exception
This paragraph shall not apply in a case in which the value
of all interests in property transferred in trust are
deductible under subsection (a).
(3) Denial of deduction in case of certain contributions of
partial interests in property
(A) In general
In the case of a contribution (not made by a transfer in
trust) of an interest in property which consists of less than
the taxpayer's entire interest in such property, a deduction
shall be allowed under this section only to the extent that the
value of the interest contributed would be allowable as a
deduction under this section if such interest had been
transferred in trust. For purposes of this subparagraph, a
contribution by a taxpayer of the right to use property shall
be treated as a contribution of less than the taxpayer's entire
interest in such property.
(B) Exceptions
Subparagraph (A) shall not apply to -
(i) a contribution of a remainder interest in a personal
residence or farm,
(ii) a contribution of an undivided portion of the
taxpayer's entire interest in property, and
(iii) a qualified conservation contribution.
(4) Valuation of remainder interest in real property
For purposes of this section, in determining the value of a
remainder interest in real property, depreciation (computed on
the straight line method) and depletion of such property shall be
taken into account, and such value shall be discounted at a rate
of 6 percent per annum, except that the Secretary may prescribe a
different rate.
(5) Reduction for certain interest
If, in connection with any charitable contribution, a liability
is assumed by the recipient or by any other person, or if a
charitable contribution is of property which is subject to a
liability, then, to the extent necessary to avoid the duplication
of amounts, the amount taken into account for purposes of this
section as the amount of the charitable contribution -
(A) shall be reduced for interest (i) which has been paid (or
is to be paid) by the taxpayer, (ii) which is attributable to
the liability, and (iii) which is attributable to any period
after the making of the contribution, and
(B) in the case of a bond, shall be further reduced for
interest (i) which has been paid (or is to be paid) by the
taxpayer on indebtedness incurred or continued to purchase or
carry such bond, and (ii) which is attributable to any period
before the making of the contribution.
The reduction pursuant to subparagraph (B) shall not exceed the
interest (including interest equivalent) on the bond which is
attributable to any period before the making of the contribution
and which is not (under the taxpayer's method of accounting)
includible in the gross income of the taxpayer for any taxable
year. For purposes of this paragraph, the term ''bond'' means
any bond, debenture, note, or certificate or other evidence of
indebtedness.
(6) Deductions for out-of-pocket expenditures
No deduction shall be allowed under this section for an
out-of-pocket expenditure made by any person on behalf of an
organization described in subsection (c) (other than an
organization described in section 501(h)(5) (relating to
churches, etc.)) if the expenditure is made for the purpose of
influencing legislation (within the meaning of section
501(c)(3)).
(7) Reformations to comply with paragraph (2)
(A) In general
A deduction shall be allowed under subsection (a) in respect
of any qualified reformation (within the meaning of section
2055(e)(3)(B)).
(B) Rules similar to section 2055(e)(3) to apply
For purposes of this paragraph, rules similar to the rules of
section 2055(e)(3) shall apply.
(8) Substantiation requirement for certain contributions
(A) General rule
No deduction shall be allowed under subsection (a) for any
contribution of $250 or more unless the taxpayer substantiates
the contribution by a contemporaneous written acknowledgment of
the contribution by the donee organization that meets the
requirements of subparagraph (B).
(B) Content of acknowledgement
An acknowledgement meets the requirements of this
subparagraph if it includes the following information:
(i) The amount of cash and a description (but not value) of
any property other than cash contributed.
(ii) Whether the donee organization provided any goods or
services in consideration, in whole or in part, for any
property described in clause (i).
(iii) A description and good faith estimate of the value of
any goods or services referred to in clause (ii) or, if such
goods or services consist solely of intangible religious
benefits, a statement to that effect.
For purposes of this subparagraph, the term ''intangible
religious benefit'' means any intangible religious benefit
which is provided by an organization organized exclusively for
religious purposes and which generally is not sold in a
commercial transaction outside the donative context.
(C) Contemporaneous
For purposes of subparagraph (A), an acknowledgment shall be
considered to be contemporaneous if the taxpayer obtains the
acknowledgment on or before the earlier of -
(i) the date on which the taxpayer files a return for the
taxable year in which the contribution was made, or
(ii) the due date (including extensions) for filing such
return.
(D) Substantiation not required for contributions reported by
the donee organization
Subparagraph (A) shall not apply to a contribution if the
donee organization files a return, on such form and in
accordance with such regulations as the Secretary may
prescribe, which includes the information described in
subparagraph (B) with respect to the contribution.
(E) Regulations
The Secretary shall prescribe such regulations as may be
necessary or appropriate to carry out the purposes of this
paragraph, including regulations that may provide that some or
all of the requirements of this paragraph do not apply in
appropriate cases.
(9) Denial of deduction where contribution for lobbying
activities
No deduction shall be allowed under this section for a
contribution to an organization which conducts activities to
which section 162(e)(1) applies on matters of direct financial
interest to the donor's trade or business, if a principal purpose
of the contribution was to avoid Federal income tax by securing a
deduction for such activities under this section which would be
disallowed by reason of section 162(e) if the donor had conducted
such activities directly. No deduction shall be allowed under
section 162(a) for any amount for which a deduction is disallowed
under the preceding sentence.
(10) Split-dollar life insurance, annuity, and endowment
contracts
(A) In general
Nothing in this section or in section 545(b)(2),
642(c), 2055, 2106(a)(2), or 2522 shall be construed to allow a
deduction, and no deduction shall be allowed, for any transfer
to or for the use of an organization described in subsection
(c) if in connection with such transfer -
(i) the organization directly or indirectly pays, or has
previously paid, any premium on any personal benefit contract
with respect to the transferor, or
(ii) there is an understanding or expectation that any
person will directly or indirectly pay any premium on any
personal benefit contract with respect to the transferor.
(B) Personal benefit contract
For purposes of subparagraph (A), the term ''personal benefit
contract'' means, with respect to the transferor, any life
insurance, annuity, or endowment contract if any direct or
indirect beneficiary under such contract is the transferor, any
member of the transferor's family, or any other person (other
than an organization described in subsection (c)) designated by
the transferor.
(C) Application to charitable remainder trusts
In the case of a transfer to a trust referred to in
subparagraph (E), references in subparagraphs (A) and (F) to an
organization described in subsection (c) shall be treated as a
reference to such trust.
(D) Exception for certain annuity contracts
If, in connection with a transfer to or for the use of an
organization described in subsection (c), such organization
incurs an obligation to pay a charitable gift annuity (as
defined in section 501(m)) and such organization purchases any
annuity contract to fund such obligation, persons receiving
payments under the charitable gift annuity shall not be treated
for purposes of subparagraph (B) as indirect beneficiaries
under such contract if -
(i) such organization possesses all of the incidents of
ownership under such contract,
(ii) such organization is entitled to all the payments
under such contract, and
(iii) the timing and amount of payments under such contract
are substantially the same as the timing and amount of
payments to each such person under such obligation (as such
obligation is in effect at the time of such transfer).
(E) Exception for certain contracts held by charitable
remainder trusts
A person shall not be treated for purposes of subparagraph
(B) as an indirect beneficiary under any life insurance,
annuity, or endowment contract held by a charitable remainder
annuity trust or a charitable remainder unitrust (as defined in
section 664(d)) solely by reason of being entitled to any
payment referred to in paragraph (1)(A) or (2)(A) of section
664(d) if -
(i) such trust possesses all of the incidents of ownership
under such contract, and
(ii) such trust is entitled to all the payments under such
contract.
(F) Excise tax on premiums paid
(i) In general
There is hereby imposed on any organization described in
subsection (c) an excise tax equal to the premiums paid by
such organization on any life insurance, annuity, or
endowment contract if the payment of premiums on such
contract is in connection with a transfer for which a
deduction is not allowable under subparagraph (A), determined
without regard to when such transfer is made.
(ii) Payments by other persons
For purposes of clause (i), payments made by any other
person pursuant to an understanding or expectation referred
to in subparagraph (A) shall be treated as made by the
organization.
(iii) Reporting
Any organization on which tax is imposed by clause (i) with
respect to any premium shall file an annual return which
includes -
(I) the amount of such premiums paid during the year and
the name and TIN of each beneficiary under the contract to
which the premium relates, and
(II) such other information as the Secretary may require.
The penalties applicable to returns required under section
6033 shall apply to returns required under this clause.
Returns required under this clause shall be furnished at such
time and in such manner as the Secretary shall by forms or
regulations require.
(iv) Certain rules to apply
The tax imposed by this subparagraph shall be treated as
imposed by chapter 42 for purposes of this title other than
subchapter B of chapter 42.
(G) Special rule where State requires specification of
charitable gift annuitant in contract
In the case of an obligation to pay a charitable gift annuity
referred to in subparagraph (D) which is entered into under the
laws of a State which requires, in order for the charitable
gift annuity to be exempt from insurance regulation by such
State, that each beneficiary under the charitable gift annuity
be named as a beneficiary under an annuity contract issued by
an insurance company authorized to transact business in such
State, the requirements of clauses (i) and (ii) of subparagraph
(D) shall be treated as met if -
(i) such State law requirement was in effect on February 8,
1999,
(ii) each such beneficiary under the charitable gift
annuity is a bona fide resident of such State at the time the
obligation to pay a charitable gift annuity is entered into,
and
(iii) the only persons entitled to payments under such
contract are persons entitled to payments as beneficiaries
under such obligation on the date such obligation is entered
into.
(H) Member of family
For purposes of this paragraph, an individual's family
consists of the individual's grandparents, the grandparents of
such individual's spouse, the lineal descendants of such
grandparents, and any spouse of such a lineal descendant.
(I) Regulations
The Secretary shall prescribe such regulations as may be
necessary or appropriate to carry out the purposes of this
paragraph, including regulations to prevent the avoidance of
such purposes.
(11) Qualified appraisal and other documentation for
certain contributions.--
(A) In general.--
(i) Denial of deduction.--In the case of an
individual, partnership, or corporation, no
deduction shall be allowed under subsection (a)
for any contribution of property for which a
deduction of more than $500 is claimed unless such
person meets the requirements of subparagraphs
(B), (C), and (D), as the case may be, with
respect to such contribution.
(ii) Exceptions.--
(I) Readily valued property.--
Subparagraphs (C) and (D) shall not
apply to cash, property described in
subsection (e)(1)(B)(iii) or
section 1221(a)(1), publicly traded
securities (as defined in section
6050L(a)(2)(B)), and any qualified
vehicle described in paragraph (12)(A)(ii)
for which an acknowledgement under
paragraph (12)(B)(iii) is provided.
(II) Reasonable cause.--Clause (i)
shall not apply if it is shown that the
failure to meet such requirements is due
to reasonable cause and not to willful
neglect.
(B) Property description for contributions of more
than $500.--In the case of contributions of property for
which a deduction of more than $500 is claimed, the
requirements of this subparagraph are met if the
individual, partnership or corporation includes with the
return for the taxable year in which the contribution is
made a description of such property and such other
information as the Secretary may require. The
requirements of this subparagraph shall not apply to a C
corporation which is not a personal service corporation
or a closely held C corporation.
(C) Qualified appraisal for contributions of more
than $5,000.--In the case of contributions of property
for which a deduction of more than $5,000 is claimed,
the requirements of this subparagraph are met if the
individual, partnership, or corporation obtains a
qualified appraisal of such property and attaches to the
return for the taxable year in which such contribution
is made such information regarding such property and
such appraisal as the Secretary may require.
(D) Substantiation for contributions of more than
$500,000.--In the case of contributions of property for
which a deduction of more than $500,000 is claimed, the
requirements of this subparagraph are met if the
individual, partnership, or corporation attaches to the
return for the taxable year a qualified appraisal of
such property.
(E) Qualified appraisal and appraiser.--For
purposes of this paragraph--
(i) Qualified appraisal.--The term
`qualified appraisal' means, with respect to any
property, an appraisal of such property which--
(I) is treated for purposes of
this paragraph as a qualified appraisal
under regulations or other guidance
prescribed by the Secretary, and
(II) is conducted by a qualified
appraiser in accordance with generally
accepted appraisal standards and any
regulations or other guidance prescribed
under subclause (I).
(ii) Qualified appraiser.--Except as
provided in clause (iii), the term `qualified
appraiser' means an individual who--
(I) <<NOTE: Regulations.>> has
earned an appraisal designation from a
recognized professional appraiser
organization or has otherwise met
minimum education and experience
requirements set forth in regulations
prescribed by the Secretary,
(II) regularly performs appraisals
for which the individual receives
compensation, and
(III) meets such other
requirements as may be prescribed by the
Secretary in regulations or other
guidance.
(iii) Specific appraisals.--An individual
shall not be treated as a qualified appraiser with
respect to any specific appraisal unless--
(I) the individual demonstrates
verifiable education and experience in
valuing the type of property subject to
the appraisal, and
(II) the individual has not been
prohibited from practicing before the
Internal Revenue Service by the
Secretary under section 330(c) of title
31, United States Code, at any time
during the 3-year period ending on the
date of the appraisal.
(E) Qualified appraisal.--For purposes of this
paragraph, the term `qualified appraisal' means, with
respect to any property, an appraisal of such property
which is treated for purposes of this paragraph as a
qualified appraisal under regulations or other guidance
prescribed by the Secretary.
(F) Aggregation of similar items of property.--For
purposes of determining thresholds under this paragraph,
property and all similar items of property donated to 1
or more donees shall be treated as 1 property.
(G) Special rule
for <<NOTE: Applicability.>> pass-thru entities.--In the
case of a partnership or S corporation, this paragraph
shall be applied at the entity level, except that the
deduction shall be denied at the partner or shareholder
level.
(H) Regulations.--The Secretary may prescribe such
regulations as may be necessary or appropriate to carry
out the purposes of this paragraph, including
regulations that may provide that some or all of the
requirements of this paragraph do not apply in
appropriate cases.
(12) Contributions of used motor vehicles, boats, and
airplanes.--
(A) In general.--In the case of a contribution of
a qualified vehicle the claimed value of which exceeds
$500--
(i) paragraph (8) shall not apply and no
deduction shall be allowed under subsection (a)
for such contribution unless the taxpayer
substantiates the contribution by a
contemporaneous written acknowledgement of the
contribution by the donee organization that meets
the requirements of subparagraph (B) and includes the
acknowledgement with the taxpayer's return of tax
which includes the deduction, and
(ii) if the organization sells the vehicle
without any significant intervening use or
material improvement of such vehicle by the
organization, the amount of the deduction allowed
under subsection (a) shall not exceed the gross
proceeds received from such sale.
(B) Content of acknowledgement.--An
acknowledgement meets the requirements of this
subparagraph if it includes the following information:
(i) The name and taxpayer identification
number of the donor.
(ii) The vehicle identification number or
similar number.
(iii) In the case of a qualified vehicle to
which subparagraph (A)(ii) applies--
(I) a certification that the
vehicle was sold in an arm's length
transaction between unrelated parties,
(II) the gross proceeds from the sale, and
(III) a statement that the deductible amount may
not exceed the amount of such gross proceeds.
(iv) In the case of a qualified vehicle to
which subparagraph (A)(ii) does not apply--
(I) a certification of the intended use or
material improvement of the vehicle and the
intended duration of such use, and
(II) a certification that the vehicle would not
be transferred in exchange for money,
other property, or services before completion
of such use or improvement.
(v) Whether the donee organization provided
any goods or services in consideration, in whole
or in part, for the qualified vehicle.
(vi) A description and good faith estimate
of the value of any goods or services referred to
in clause (v) or, if such goods or services
consist solely of intangible religious benefits
(as defined in paragraph (8)(B)), a statement to
that effect.
(C) Contemporaneous.--For purposes of subparagraph (A),
an acknowledgement shall be considered to be
contemporaneous if the donee organization provides it
within 30 days of--
(i) the sale of the qualified vehicle, or
(ii) in the case of an acknowledgement
including a certification described in
subparagraph (B)(iv), the contribution of the
qualified vehicle.
(D) Information to secretary.--A donee
organization required to provide an acknowledgement
under this paragraph shall provide to the Secretary the
information contained in the acknowledgement. Such
information shall be provided at such time and in such
manner as the Secretary may prescribe.
(E) Qualified vehicle.--For purposes of this
paragraph, the term `qualified vehicle' means any--
(i) motor vehicle manufactured primarily for
use on public streets, roads, and highways,
(ii) boat, or
(iii) airplane.
Such term shall not include any property which is
described in section 1221(a)(1).
(F) Regulations or other guidance.--The Secretary
shall prescribe such regulations or other guidance as
may be necessary to carry out the purposes of this
paragraph.
The Secretary may prescribe regulations or other
guidance which exempts sales by the donee organization
which are in direct furtherance of such organization's
charitable purpose from the requirements of
subparagraphs (A)(ii) and (B)(iv)(II).
(13) Contributions of certain interests in buildings
located in registered historic districts.--
(A) In general.--No deduction shall be allowed
with respect to any contribution described in
subparagraph (B) unless the taxpayer includes with the
return for the taxable year of the contribution a $500
filing fee.
(B) Contribution described.--A contribution is
described in this subparagraph if such contribution is a
qualified conservation contribution (as defined in
subsection (h)) which is a restriction with respect to
the exterior of a building described in subsection
(h)(4)(C)(ii) and for which a deduction is claimed in
excess of $10,000.
(C) Dedication of fee.--Any fee collected under
this paragraph shall be used for the enforcement of the
provisions of subsection (h).
(14) Reduction for amounts attributable to rehabilitation
credit.--In the case of any qualified conservation contribution
(as defined in subsection (h)), the amount of the deduction
allowed under this section shall be reduced by an amount which
bears the same ratio to the fair market value of the contribution as--
(A) the sum of the credits allowed to the taxpayer
under section 47 for the 5 preceding taxable years with
respect to any building which is a part of such
contribution, bears to
(B) the fair market value of the building on the
date of the contribution.
(15) Special rule for taxidermy property.--
(A) Basis.--For purposes of this section and
notwithstanding section 1012, in the case of a
charitable contribution of taxidermy property which is
made by the person who prepared, stuffed, or mounted the
property or by any person who paid or incurred the cost
of such preparation, stuffing, or mounting, only the
cost of the preparing, stuffing, or mounting shall be
included in the basis of such property.
(B) Taxidermy property.--For purposes of this
section, the term `taxidermy property' means any work of
art which--
(i) is the reproduction or preservation of
an animal, in whole or in part,
(ii) is prepared, stuffed, or mounted for
purposes of recreating one or more characteristics
of such animal, and
(iii) contains a part of the body of the
dead animal.
(16) Contributions of clothing and household items.--
(A) In general.--In the case of an individual,
partnership, or corporation, no deduction shall be
allowed under subsection (a) for any contribution of
clothing or a household item unless such clothing or
household item is in good used condition or better.
(B) Items of minimal value.--Notwithstanding
subparagraph (A), the Secretary may by regulation deny a
deduction under subsection (a) for any contribution of
clothing or a household item which has minimal monetary
value.
(C) Exception for certain property.--Subparagraphs
(A) and (B) shall not apply to any contribution of a
single item of clothing or a household item for which a
deduction of more than $500 is claimed if the taxpayer
includes with the taxpayer's return a qualified
appraisal with respect to the property.
(D) Household items.--For purposes of this para-
graph--
(i) In general.--The term `household items'
includes furniture, furnishings, electronics,
appliances, linens, and other similar items.
(ii) Excluded items.--Such term does not
include--
(I) food,
(II) paintings, antiques, and
other objects of art,
(III) jewelry and gems, and
(IV) collections.
(E) Special rule for pass-thru entities.--In the
case of a partnership or S corporation, this paragraph
shall be applied at the entity level, except that the
deduction shall be denied at the partner or shareholder
level.
(17) Recordkeeping.--No deduction shall be allowed under
subsection (a) for any contribution of a cash, check, or other
monetary gift unless the donor maintains as a record of such
contribution a bank record or a written communication from the
donee showing the name of the donee organization, the date of
the contribution, and the amount of the contribution.
(18) Contributions to donor advised funds.--A deduction
otherwise allowed under subsection (a) for any contribution to a
donor advised fund (as defined in section 4966(d)(2)) shall only
be allowed if--
(A) the sponsoring organization (as defined in
section 4966(d)(1)) with respect to such donor advised
fund is not--
(i) described in paragraph (3), (4), or (5)
of subsection (c), or
(ii) a type III supporting organization (as
defined in section 4943(f)(5)(A)) which is not a
functionally integrated type III supporting
organization (as defined in section
4943(f)(5)(B)), and
(B) the taxpayer obtains a contemporaneous written
acknowledgment (determined under rules similar to the
rules of paragraph (8)(C)) from the sponsoring
organization (as so defined) of such donor advised fund
that such organization has exclusive legal control over
the assets contributed.
(g) Amounts paid to maintain certain students as members of
taxpayer's household
(1) In general
Subject to the limitations provided by paragraph (2), amounts
paid by the taxpayer to maintain an individual (other than a
dependent, as defined in section 152(determined without regard to
subsections (b)(1), (b)(2), and (d)(1)(B) thereof), or a relative
of the taxpayer) as a member of his household during the period that
such individual is -
(A) a member of the taxpayer's household under a written
agreement between the taxpayer and an organization described in
paragraph (2), (3), or (4) of subsection (c) to implement a
program of the organization to provide educational
opportunities for pupils or students in private homes, and
(B) a full-time pupil or student in the twelfth or any lower
grade at an educational organization described in section
170(b)(1)(A)(ii) located in the United States,
shall be treated as amounts paid for the use of the organization.
(2) Limitations
(A) Amount
Paragraph (1) shall apply to amounts paid within the taxable
year only to the extent that such amounts do not exceed $50
multiplied by the number of full calendar months during the
taxable year which fall within the period described in
paragraph (1). For purposes of the preceding sentence, if 15 or
more days of a calendar month fall within such period such
month shall be considered as a full calendar month.
(B) Compensation or reimbursement
Paragraph (1) shall not apply to any amount paid by the
taxpayer within the taxable year if the taxpayer receives any
money or other property as compensation or reimbursement for
maintaining the individual in his household during the period
described in paragraph (1).
(3) Relative defined
For purposes of paragraph (1), the term ''relative of the
taxpayer'' means an individual who, with respect to the taxpayer,
bears any of the relationships described in subparagraphs (A)
through (G) of section 152(d)(2).
(4) No other amount allowed as deduction
No deduction shall be allowed under subsection (a) for any
amount paid by a taxpayer to maintain an individual as a member
of his household under a program described in paragraph (1)(A)
except as provided in this subsection.
(h) Qualified conservation contribution
(1) In general
For purposes of subsection (f)(3)(B)(iii), the term ''qualified
conservation contribution'' means a contribution -
(A) of a qualified real property interest,
(B) to a qualified organization,
(C) exclusively for conservation purposes.
(2) Qualified real property interest
For purposes of this subsection, the term ''qualified real
property interest'' means any of the following interests in real
property:
(A) the entire interest of the donor other than a qualified
mineral interest,
(B) a remainder interest, and
(C) a restriction (granted in perpetuity) on the use which
may be made of the real property.
(3) Qualified organization
For purposes of paragraph (1), the term ''qualified
organization'' means an organization which -
(A) is described in clause (v) or (vi) of subsection
(b)(1)(A), or
(B) is described in section 501(c)(3) and -
(i) meets the requirements of section 509(a)(2), or
(ii) meets the requirements of section 509(a)(3) and is
controlled by an organization described in subparagraph (A)
or in clause (i) of this subparagraph.
(4) Conservation purpose defined
(A) In general
For purposes of this subsection, the term ''conservation
purpose'' means -
(i) the preservation of land areas for outdoor recreation
by, or the education of, the general public,
(ii) the protection of a relatively natural habitat of
fish, wildlife, or plants, or similar ecosystem,
(iii) the preservation of open space (including farmland
and forest land) where such preservation is -
(I) for the scenic enjoyment of the general public, or
(II) pursuant to a clearly delineated Federal, State, or
local governmental conservation policy,
and will yield a significant public benefit, or
(iv) the preservation of an historically important land
area or a certified historic structure.
(B) Special rules with respect to buildings in
registered historic districts.--In the case of any
contribution of a qualified real property interest which
is a restriction with respect to the exterior of a
building described in subparagraph (C)(ii), such
contribution shall not be considered to be exclusively
for conservation purposes unless--
(i) such interest--
(I) includes a restriction which
preserves the entire exterior of the
building (including the front, sides,
rear, and height of the building), and
(II) prohibits any change in the
exterior of the building which is
inconsistent with the historical
character of such exterior,
(ii) the donor and donee enter into a
written agreement certifying, under penalty of
perjury, that the donee--
(I) is a qualified organization
(as defined in paragraph (3)) with a
purpose of environmental protection,
land conservation, open space
preservation, or historic preservation,
and
(II) has the resources to manage
and enforce the restriction and a
commitment to do so, and
(iii) in the case of any contribution made
in a taxable year beginning after the date of the
enactment of this subparagraph, the taxpayer
includes with the taxpayer's return for the
taxable year of the contribu- tion--
(I) a qualified appraisal (within
the meaning of subsection (f)(11)(E)) of
the qualified property interest,
(II) photographs of the entire
exterior of the building, and
(III) a description of all
restrictions on the development of the
building.
(C) Certified historic structure
For purposes of subparagraph (A)(iv), the term ''certified
historic structure'' means -
(i) any building, structure, or land area which is listed
in the National Register, or
(ii) any building which is located in a registered historic
district (as defined in section 47(c)(3)(B)) and is certified
by the Secretary of the Interior to the Secretary as being of
historic significance to the district.
A building, structure, or land area satisfies the preceding
sentence if it satisfies such sentence either at the time of the
transfer or on the due date (including extensions) for filing the
transferor's return under this chapter for the taxable year in
which the transfer is made.
(5) Exclusively for conservation purposes
For purposes of this subsection -
(A) Conservation purpose must be protected
A contribution shall not be treated as exclusively for
conservation purposes unless the conservation purpose is
protected in perpetuity.
(B) No surface mining permitted
(i) In general
Except as provided in clause (ii), in the case of a
contribution of any interest where there is a retention of a
qualified mineral interest, subparagraph (A) shall not be
treated as met if at any time there may be extraction or
removal of minerals by any surface mining method.
(ii) Special rule
With respect to any contribution of property in which the
ownership of the surface estate and mineral interests has
been and remains separated, subparagraph (A) shall be treated
as met if the probability of surface mining occurring on such
property is so remote as to be negligible.
(6) Qualified mineral interest
For purposes of this subsection, the term ''qualified mineral
interest'' means -
(A) subsurface oil, gas, or other minerals, and
(B) the right to access to such minerals.
(i) Standard mileage rate for use of passenger automobile
For purposes of computing the deduction under this section for
use of a passenger automobile, the standard mileage rate shall be
14 cents per mile.
(j) Denial of deduction for certain travel expenses
No deduction shall be allowed under this section for traveling
expenses (including amounts expended for meals and lodging) while
away from home, whether paid directly or by reimbursement, unless
there is no significant element of personal pleasure, recreation,
or vacation in such travel.
(k) Disallowance of deductions in certain cases
For disallowance of deductions for contributions to or for
the use of communist controlled organizations, see section
11(a) (FOOTNOTE 2) of the Internal Security Act of 1950 (50
U.S.C. 790).
(FOOTNOTE 2) See References in Text note below.
(l) Treatment of certain amounts paid to or for the benefit of
institutions of higher education
(1) In general
For purposes of this section, 80 percent of any amount
described in paragraph (2) shall be treated as a charitable
contribution.
(2) Amount described
For purposes of paragraph (1), an amount is described in this
paragraph if -
(A) the amount is paid by the taxpayer to or for the benefit
of an educational organization -
(i) which is described in subsection (b)(1)(A)(ii), and
(ii) which is an institution of higher education (as
defined in section 3304(f)), and
(B) such amount would be allowable as a deduction under this
section but for the fact that the taxpayer receives (directly
or indirectly) as a result of paying such amount the right to
purchase tickets for seating at an athletic event in an
athletic stadium of such institution.
If any portion of a payment is for the purchase of such tickets,
such portion and the remaining portion (if any) of such payment
shall be treated as separate amounts for purposes of this
subsection.
(m) Certain Donee Income From Intellectual Property Treated as an
Additional Charitable Contribution.--
(1) Treatment as additional contribution.--In the case of
a taxpayer who makes a qualified intellectual property
contribution, the deduction allowed under subsection (a) for
each taxable year of the taxpayer ending on or after the date of
such contribution shall be increased (subject to the limitations
under subsection (b)) by the applicable percentage of qualified
donee income with respect to such contribution which is properly
allocable to such year under this subsection.
(2) Reduction in additional deductions to extent of
initial deduction.--With respect to any qualified intellectual
property contribution, the deduction allowed under subsection
(a) shall be increased under paragraph (1) only to the extent
that the aggregate amount of such increases with respect to such
contribution exceed the amount allowed as a deduction under
subsection (a) with respect to such contribution determined
without regard to this subsection.
(3) Qualified donee income.--For purposes of this
subsection, the term `qualified donee income' means any net
income received by or accrued to the donee which is properly
allocable to the qualified intellectual property.
(4) Allocation of qualified donee income to taxable years
of donor.--For purposes of this subsection, qualified donee
income shall be treated as properly allocable to a taxable year
of the donor if such income is received by or accrued to the
donee for the taxable year of the donee which ends within or
with such taxable year of the donor.
(5) 10-year limitation.--Income shall not be treated as
properly allocable to qualified intellectual property for
purposes of this subsection if such income is received by or
accrued to the donee after the 10-year period beginning on the
date of the contribution of such property.
(6) Benefit limited to life of intellectual property.--
Income shall not be treated as properly allocable to qualified
intellectual property for purposes of this subsection if such
income is received by or accrued to the donee after the
expiration of the legal life of such property.
(7) Applicable percentage.--For purposes of this
subsection, the term `applicable percentage' means the
percentage determined under the following table which
corresponds to a taxable year of the donor ending on or after
the date of the qualified intellectual property contribution:
Taxable Year of Donor
Ending on or After Applicable
Date of Contribution: Percentage:
1st.................................................. 100
2nd.................................................. 100
3rd.................................................. 90
4th.................................................. 80
5th.................................................. 70
6th.................................................. 60
7th.................................................. 50
8th.................................................. 40
9th.................................................. 30
10th................................................. 20
11th................................................. 10
12th................................................. 10.
(8) Qualified intellectual property contribution.--For
purposes of this subsection, the term `qualified intellectual
property contribution' means any charitable contribution of
qualified intellectual property--
(A) the amount of which taken into account under
this section is reduced by reason of subsection (e)(1),
and
(B) with respect to which the donor informs the
donee at the time of such contribution that the donor
intends to treat such contribution as a qualified
intellectual property contribution for purposes of this
subsection and section 6050L.
(9) Qualified intellectual property.--For purposes of this
subsection, the term `qualified intellectual property' means
property described in subsection (e)(1)(B)(iii) (other than
property contributed to or for the use of an organization
described in subsection (e)(1)(B)(ii)).
(10) Other special rules.--
(A) Application of limitations on charitable
contributions.--Any increase under this subsection of
the deduction provided under subsection (a) shall be
treated for purposes of subsection (b) as a deduction
which is attributable to a charitable contribution to
the donee to which such increase relates.
(B) Net income determined by donee.--The net
income taken into account under paragraph (3) shall not
exceed the amount of such income reported under section
6050L(b)(1).
(C) Deduction limited to 12 taxable years.--Except
as may be provided under subparagraph (D)(i), this
subsection shall not apply with respect to any qualified
intellectual property contribution for any taxable year
of the donor after the 12th taxable year of the donor
which ends on or after the date of such contribution.
(D) Regulations.--The Secretary may issue
regulations or other guidance to carry out the purposes
of this subsection, including regulations or guidance--
(i) modifying the application of this
subsection in the case of a donor or donee with a
short taxable year, and
(ii) providing for the determination of an
amount to be treated as net income of the donee
which is properly allocable to qualified
intellectual property in the case of a donee who
uses such property to further a purpose or
function constituting the basis of the donee's
exemption under section 501 (or, in the case of a
governmental unit, any purpose described in
section 170(c)) and does not possess a right to
receive any payment from a third party with
respect to such property.
(n) Expenses Paid by Certain Whaling Captains in Support of Native
Alaskan Subsistence Whaling.--
(1) In general.--In the case of an individual who is
recognized by the Alaska Eskimo Whaling Commission as a whaling
captain charged with the responsibility of maintaining and
carrying out sanctioned whaling activities and who engages in
such activities during the taxable year, the amount described in
paragraph (2) (to the extent such amount does not exceed
$10,000 for the taxable year) shall be treated for purposes of
this section as a charitable contribution.
(2) Amount described.--
(A) In general.--The amount described in this
paragraph is the aggregate of the reasonable and
necessary whaling expenses paid by the taxpayer during
the taxable year in carrying out sanctioned whaling
activities.
(B) Whaling expenses.--For purposes of
subparagraph (A), the term `whaling expenses' includes
expenses for--
(i) the acquisition and maintenance of
whaling boats, weapons, and gear used in
sanctioned whaling activities,
(ii) the supplying of food for the crew and
other provisions for carrying out such activities,
and
(iii) storage and distribution of the catch
from such activities.
(3) Sanctioned whaling activities.--For purposes of this
subsection, the term `sanctioned whaling activities' means
subsistence bowhead whale hunting activities conducted pursuant
to the management plan of the Alaska Eskimo Whaling Commission.
(4) Substantiation of expenses.--
The <<NOTE: Regulations.>> Secretary shall issue guidance
requiring that the taxpayer substantiate the whaling expenses
for which a deduction is claimed under this subsection,
including by maintaining appropriate written records with
respect to the time, place, date, amount, and nature of the
expense, as well as the taxpayer's eligibility for such
deduction, and that (to the extent provided by the Secretary)
such substantiation be provided as part of the taxpayer's return
of tax.
(o) Special Rules for Fractional Gifts.--
(1) Denial of deduction in certain cases.--
(A) In general.--No deduction shall be allowed for
a contribution of an undivided portion of a taxpayer's
entire interest in tangible personal property unless all
interest in the property is held immediately before such
contribution by--
(i) the taxpayer, or
(ii) the taxpayer and the donee.
(B) Exceptions.--The Secretary may, by regulation,
provide for exceptions to subparagraph (A) in cases
where all persons who hold an interest in the property
make proportional contributions of an undivided portion
of the entire interest held by such persons.
(2) Valuation of subsequent gifts.--In the case of any
additional contribution, the fair market value of such
contribution shall be determined by using the lesser of--
(A) the fair market value of the property at the
time of the initial fractional contribution, or
(B) the fair market value of the property at the
time of the additional contribution.
(3) Recapture of deduction in certain cases; addition to
tax.--
(A) Recapture.--The Secretary shall provide for
the recapture of the amount of any deduction allowed
under this section (plus interest) with respect to any
contribution of an undivided portion of a taxpayer's
entire interest in tangible personal property--
(i) in any case in which the donor does not
contribute all of the remaining interest in such
property to the donee (or, if such donee is no
longer in existence, to any person described in
section 170(c)) before the earlier of--
(I) the date that is 10 years
after the date of the initial fractional
contribution, or
(II) the date of the death of the
donor, and
(ii) in any case in which the donee has not,
during the period beginning on the date of the
initial fractional contribution and ending on the
date described in clause (i)--
(I) had substantial physical
possession of the property, and
(II) used the property in a use
which is related to a purpose or
function constituting the basis for the
organizations' exemption under section
501.
(B) Addition to tax.--The tax imposed under this
chapter for any taxable year for which there is a
recapture under subparagraph (A) shall be increased by
10 percent of the amount so recaptured.
(4) Definitions.--For purposes of this subsection--
(A) Additional contribution.--The term `additional
contribution' means any charitable contribution by the
taxpayer of any interest in property with respect to
which the taxpayer has previously made an initial
fractional contribution.
(B) Initial fractional contribution.--The term
`initial fractional contribution' means, with respect to
any taxpayer, the first charitable contribution of an
undivided portion of the taxpayer's entire interest in
any tangible personal property.
(p) Other cross references
(1) For treatment of certain organizations providing child
care, see section 501(k).
(2) For charitable contributions of estates and trusts, see
section 642(c).
(3) For nondeductibility of contributions by common trust
funds, see section 584.
(4) For charitable contributions of partners, see section 702.
(5) For charitable contributions of nonresident aliens, see
section 873.
(6) For treatment of gifts for benefit of or use in
connection with the Naval Academy as gifts to or for use of the
United States, see section 6973 of title 10, United States
Code.
(7) For treatment of gifts accepted by the Secretary of
State, the Director of the International Communication Agency,
or the Director of the United States International Development
Cooperation Agency, as gifts to or for the use of the United
States, see section 25 of the State Department Basic
Authorities Act of 1956.
(8) For treatment of gifts of money accepted by the Attorney
General for credit to the ''Commissary Funds Federal Prisons''
as gifts to or for the use of the United States, see section
4043 of title 18, United States Code.
(9) For charitable contributions to or for the use of Indian
tribal governments (or their subdivisions), see section 7871.
Sources
(Aug. 16, 1954, ch. 736, 68A Stat. 58; Aug. 7, 1956, ch. 1031, Sec.
1, 70 Stat. 1117; Pub. L. 85-866, title I, Sec. 10(a), 11, 12(a),
Sept. 2, 1958, 72 Stat. 1609, 1610; Pub. L. 86-779, Sec. 7(a),
Sept. 14, 1960, 74 Stat. 1002; Pub. L. 87-834, Sec. 13(d), Oct. 16,
1962, 76 Stat. 1034; Pub. L. 87-858, Sec. 2(a), (b), Oct. 23, 1962,
76 Stat. 1134; Pub. L. 88-272, title II, Sec. 209(a), (b), (c)(1),
(d)(1), (e), 231(b)(1), Feb. 26, 1964, 78 Stat. 43, 45-47, 105;
Pub. L. 89-570, Sec. 1(b)(1), Sept. 12, 1966, 80 Stat. 762; Pub. L.
91-172, title I, Sec. 101(j)(2), title II, Sec. 201(a)(1), (2)(A),
(h)(1), Dec. 30, 1969, 83 Stat. 526, 549, 558, 565; Pub. L. 94-455,
title II, Sec. 205(c)(1)(A), title X, Sec. 1052(c)(2), title XIII,
Sec. 1307(c), (d)(1)(B)(i), 1313(b)(1), title XIX, Sec.
1901(a)(28), (b)(8)(A), 1906(b)(13)(A), title XXI, Sec. 2124(e)(1),
2135(a), Oct. 4, 1976, 90 Stat. 1535, 1648, 1726, 1727, 1730, 1768,
1794, 1834, 1919, 1928; Pub. L. 95-30, title III, Sec. 309(a), May
23, 1977, 91 Stat. 154; Pub. L. 95-600, title IV, Sec. 402(b)(2),
403(c)(1), Nov. 6, 1978, 92 Stat. 2868; Pub. L. 96-465, title II,
Sec. 2206(e)(2), Oct. 17, 1980, 94 Stat. 2162; Pub. L. 96-541, Sec.
6(a), (b), Dec. 17, 1980, 94 Stat. 3206; Pub. L. 97-34, title I,
Sec. 121(a), title II, Sec. 222(a), 263(a), Aug. 13, 1981, 95 Stat.
196, 248, 264; Pub. L. 97-248, title II, Sec. 286(b)(1), Sept. 3,
1982, 96 Stat. 570; Pub. L. 97-258, Sec. 3(f)(1), Sept. 13, 1982,
96 Stat. 1064; Pub. L. 97-354, Sec. 5(a)(21), Oct. 19, 1982, 96
Stat. 1694; Pub. L. 97-448, title I, Sec. 102(f)(7), Jan. 12, 1983,
96 Stat. 2372; Pub. L. 97-473, title II, Sec. 202(b)(4), Jan. 14,
1983, 96 Stat. 2609; Pub. L. 98-369, div. A, title I, Sec.
174(b)(5)(A), title III, Sec. 301(a)-(c), title IV, Sec. 492(b)(1),
title X, Sec. 1022(b), 1031(a), 1032(b)(1), 1035(a), July 18, 1984,
98 Stat. 707, 777, 778, 854, 1028, 1033, 1042; Pub. L. 99-514,
title I, Sec. 142(d), title II, Sec. 231(f), title III, Sec.
301(b)(2), title XVIII, Sec. 1831, Oct. 22, 1986, 100 Stat. 2120,
2180, 2217, 2851; Pub. L. 100-203, title X, Sec. 10711(a)(1), Dec.
22, 1987, 101 Stat. 1330-464; Pub. L. 100-647, title VI, Sec.
6001(a), Nov. 10, 1988, 102 Stat. 3683; Pub. L. 101-508, title XI,
Sec. 11801(a)(11), (c)(5), 11813(b)(10), Nov. 5, 1990, 104 Stat.
1388-520, 1388-523, 1388-554; Pub. L. 103-66, title XIII, Sec.
13172(a), 13222(b), Aug. 10, 1993, 107 Stat. 455, 479; Pub. L.
104-188, title I, Sec. 1206(a), 1316(b), Aug. 20, 1996, 110 Stat.
1776, 1786; Pub. L. 105-34, title II, Sec. 224(a), title V, Sec.
508(d), title VI, Sec. 602(a), title IX, Sec. 973(a), Aug. 5, 1997,
111 Stat. 818, 860, 862, 898; Pub. L. 105-206, title VI, Sec.
6004(e), July 22, 1998, 112 Stat. 795; Pub. L. 105-277, div. J,
title I, Sec. 1004(a)(1), Oct. 21, 1998, 112 Stat. 2681-888; Pub.
L. 106-170, title V, Sec. 532(c)(1)(A), (B), 537(a), Dec. 17, 1999,
113 Stat. 1930, 1936; Pub. L. 106-554, Sec. 1(a)(7) (title I, Sec.
165(a)-(e)), Dec. 21, 2000, 114 Stat. 2763, 2763A-626; Pub. L.
107-16, title V, Sec. 542(e)(2)(B), June 7, 2001, 115 Stat. 85.)
Amendment of Section
AMENDMENT OF SUBSECTION (E)(1)
Pub. L. 107-16, title V, Sec. 542(e)(2)(B), (f)(1), title IX,
Sec. 901, June 7, 2001, 115 Stat. 85, 86, 150, provided that,
applicable to estates of decedents dying after Dec. 31, 2009,
subsection (e)(1) of this section is temporarily amended by
inserting at end ''For purposes of this paragraph, the
determination of whether property is a capital asset shall be
made without regard to the exception contained in section
1221(a)(3)(C) for basis determined under section 1022.''. See
Effective and Termination Dates of 2001 Amendment note below.
References in Text
REFERENCES IN TEXT
The Federal Food, Drug, and Cosmetic Act, as amended, referred to
in subsec. (e)(3)(A)(iv), is act June 25, 1938, ch. 675, 52 Stat.
1040, as amended, which is classified generally to chapter 9 (Sec.
301 et seq.) of Title 21, Food and Drugs. For complete
classification of this Act to the Code, see section 301 of Title 21
and Tables.
The date of the enactment of the Community Renewal Tax Relief Act
of 2000, referred to in subsec. (e)(6)(B)(i)(III), is the date of
enactment of H.R. 5662, as enacted by Pub. L. 106-554, which was
approved Dec. 21, 2000.
Section 11(a) of the Internal Security Act of 1950 (50 U.S.C.
790), referred to in subsec. (k), was repealed by Pub. L. 103-199,
title VIII, Sec. 803(1), Dec. 17, 1993, 107 Stat. 2329.
Section 25 of the State Department Basic Authorities Act of 1956,
referred to in subsec. (m)(7), is classified to section 2697 of
Title 22, Foreign Relations and Intercourse.
Miscellaneous
ACCELERATION OF INCOME TAX BENEFITS FOR CHARITABLE CASH
CONTRIBUTIONS FOR RELIEF OF INDIAN OCEAN TSUNAMI VICTIMS.
In General.--For purposes of section 170 of the Internal Revenue
Code of 1986, a taxpayer may treat any contribution described in
subsection (b) made in January 2005 as if such contribution was made on
December 31, 2004, and not in January 2005.
Contribution Described.--A contribution is described in this
subsection if such contribution is a cash contribution made for the
relief of victims in areas affected by the December 26, 2004, Indian
Ocean tsunami for which a charitable contribution deduction is allowable
under section 170 of the Internal Revenue Code of 1986.
Pub. L. 109-1, approved January 7, 2005.
AMENDMENTS
2007 - PL 110-172
(c) Amendment Related to Section 1215 of the Act.--Subclause (I) of
section 170(e)(7)(D)(i) is amended by striking ``related'' and inserting
``substantial and related''.
2006 - Tax Relief and Health Care Act of 2006 (P.L. 109-432)
SEC. 116. CORPORATE DONATIONS OF SCIENTIFIC PROPERTY USED FOR RESEARCH
AND OF COMPUTER TECHNOLOGY AND EQUIPMENT.
(a) Extension of Computer Technology and Equipment Donation.--
(1) In general.--Section 170(e)(6)(G) is amended by striking
``2005'' and inserting ``2007''.
(b) Expansion of Charitable Contribution Allowed for Scientific
Property Used for Research and for Computer Technology and Equipment
Used for Educational Purposes.--
(1) Scientific property used for research.--
(A) In general.--Clause (ii) of section 170(e)(4)(B)
(defining qualified research contributions) is amended
by inserting ``or assembled'' after ``constructed''.
(B) Conforming amendment.--Clause (iii) of section
170(e)(4)(B) is amended by inserting ``or assembly''
after ``construction''.
(2) Computer technology and equipment for educational
purposes.--
(A) In general.--Clause (ii) of section 170(e)(6)(B)
is amended by inserting ``or assembled'' after
``constructed'' and ``or assembling'' after
``construction''.
(B) Conforming amendment.--Subparagraph (D) of
section 170(e)(6) is amended by inserting ``or
assembled'' after ``constructed'' and ``or assembly''
after ``construction''.
2006 - Pension Protection Act of 2006 (P.L. 109-280)
SEC. 1234. TREATMENT OF CHARITABLE CONTRIBUTION DEDUCTIONS TO DONOR
ADVISED FUNDS.
(a) Income.--Section 170(f) <<NOTE: 26 USC 170.>> (relating to
disallowance of deduction in certain cases and special rules), as
amended by this Act, is amended by adding at the end the following new
paragraph:
``(18) Contributions to donor advised funds.--A deduction
otherwise allowed under subsection (a) for any contribution to a
donor advised fund (as defined in section 4966(d)(2)) shall only
be allowed if--
``(A) the sponsoring organization (as defined in
section 4966(d)(1)) with respect to such donor advised
fund is not--
``(i) described in paragraph (3), (4), or (5)
of subsection (c), or
``(ii) a type III supporting organization (as
defined in section 4943(f)(5)(A)) which is not a
functionally integrated type III supporting
organization (as defined in section
4943(f)(5)(B)), and
``(B) the taxpayer obtains a contemporaneous written
acknowledgment (determined under rules similar to the
rules of paragraph (8)(C)) from the sponsoring
organization (as so defined) of such donor advised fund
that such organization has exclusive legal control over
the assets contributed.''.
2006 - Pension Protection Act of 2006 (P.L. 109-280)
Section 1219(c) Qualified Appraisers and Appraisals.--
(1) In general.--Subparagraph <<NOTE: 26 USC 170.>> (E) of
section 170(f)(11) is amended to read as follows:
``(E) Qualified appraisal and appraiser.--For
purposes of this paragraph--
``(i) Qualified appraisal.--The term
`qualified appraisal' means, with respect to any
property, an appraisal of such property which--
``(I) is treated for purposes of
this paragraph as a qualified appraisal
under regulations or other guidance
prescribed by the Secretary, and
``(II) is conducted by a qualified
appraiser in accordance with generally
accepted appraisal standards and any
regulations or other guidance prescribed
under subclause (I).
``(ii) Qualified appraiser.--Except as
provided in clause (iii), the term `qualified
appraiser' means an individual who--
``(I) <<NOTE: Regulations.>> has
earned an appraisal designation from a
recognized professional appraiser
organization or has otherwise met
minimum education and experience
requirements set forth in regulations
prescribed by the Secretary,
``(II) regularly performs appraisals
for which the individual receives
compensation, and
``(III) meets such other
requirements as may be prescribed by the
Secretary in regulations or other
guidance.
``(iii) Specific appraisals.--An individual
shall not be treated as a qualified appraiser with
respect to any specific appraisal unless--
``(I) the individual demonstrates
verifiable education and experience in
valuing the type of property subject to
the appraisal, and
``(II) the individual has not been
prohibited from practicing before the
Internal Revenue Service by the
Secretary under section 330(c) of title
31, United States Code, at any time
during the 3-year period ending on the
date of the appraisal.''.
2006 - Pension Protection Act of 2006 (P.L. 109-280)
SEC. 1218. CONTRIBUTIONS OF FRACTIONAL INTERESTS IN TANGIBLE PERSONAL
PROPERTY.
(a) Income Tax.--Section 170 (relating to charitable, etc.,
contributions and gifts) is amended by redesignating subsection (o) as
subsection (p) and by inserting after subsection (n) the following new
subsection:
``(o) Special Rules for Fractional Gifts.--
``(1) Denial of deduction in certain cases.--
``(A) In general.--No deduction shall be allowed for
a contribution of an undivided portion of a taxpayer's
entire interest in tangible personal property unless all
interest in the property is held immediately before such
contribution by--
``(i) the taxpayer, or
``(ii) the taxpayer and the donee.
``(B) Exceptions.--The Secretary may, by regulation,
provide for exceptions to subparagraph (A) in cases
where all persons who hold an interest in the property
make proportional contributions of an undivided portion
of the entire interest held by such persons.
``(2) Valuation of subsequent gifts.--In the case of any
additional contribution, the fair market value of such
contribution shall be determined by using the lesser of--
``(A) the fair market value of the property at the
time of the initial fractional contribution, or
``(B) the fair market value of the property at the
time of the additional contribution.
``(3) Recapture of deduction in certain cases; addition to
tax.--
``(A) Recapture.--The Secretary shall provide for
the recapture of the amount of any deduction allowed
under this section (plus interest) with respect to any
contribution of an undivided portion of a taxpayer's
entire interest in tangible personal property--
``(i) in any case in which the donor does not
contribute all of the remaining interest in such
property to the donee (or, if such donee is no
longer in existence, to any person described in
section 170(c)) before the earlier of--
``(I) the date that is 10 years
after the date of the initial fractional
contribution, or
``(II) the date of the death of the
donor, and
``(ii) in any case in which the donee has not,
during the period beginning on the date of the
initial fractional contribution and ending on the
date described in clause (i)--
``(I) had substantial physical
possession of the property, and
``(II) used the property in a use
which is related to a purpose or
function constituting the basis for the
organizations' exemption under section
501.
``(B) Addition to tax.--The tax imposed under this
chapter for any taxable year for which there is a
recapture under subparagraph (A) shall be increased by
10 percent of the amount so recaptured.
``(4) Definitions.--For purposes of this subsection--
``(A) Additional contribution.--The term `additional
contribution' means any charitable contribution by the
taxpayer of any interest in property with respect to
which the taxpayer has previously made an initial
fractional contribution.
``(B) Initial fractional contribution.--The term
`initial fractional contribution' means, with respect to
any taxpayer, the first charitable contribution of an
undivided portion of the taxpayer's entire interest in
any tangible personal property.''.
2006 - Pension Protection Act of 2006 (P.L. 109-280)
SEC. 1217. MODIFICATION OF RECORDKEEPING REQUIREMENTS FOR CERTAIN
CHARITABLE CONTRIBUTIONS.
(a) Recordkeeping Requirement.--Subsection (f) of section 170, as
amended by this Act, <<NOTE: 26 USC 170.>> is amended by adding at the
end the following new paragraph:
``(17) Recordkeeping.--No deduction shall be allowed under
subsection (a) for any contribution of a cash, check, or other
monetary gift unless the donor maintains as a record of such
contribution a bank record or a written communication from the
donee showing the name of the donee organization, the date of
the contribution, and the amount of the contribution.''.
2006 - Pension Protection Act of 2006 (P.L. 109-280)
SEC. 1216. LIMITATION OF DEDUCTION FOR CHARITABLE CONTRIBUTIONS OF
CLOTHING AND HOUSEHOLD ITEMS.
(a) In General.--Subsection (f) of section 170, as amended by this
Act, <<NOTE: 26 USC 170.>> is amended by adding at the end the following
new paragraph:
``(16) Contributions of clothing and household items.--
``(A) In general.--In the case of an individual,
partnership, or corporation, no deduction shall be
allowed under subsection (a) for any contribution of
clothing or a household item unless such clothing or
household item is in good used condition or better.
``(B) Items of minimal value.--Notwithstanding
subparagraph (A), the Secretary may by regulation deny a
deduction under subsection (a) for any contribution of
clothing or a household item which has minimal monetary
value.
``(C) Exception for certain property.--Subparagraphs
(A) and (B) shall not apply to any contribution of a
single item of clothing or a household item for which a
deduction of more than $500 is claimed if the taxpayer
includes with the taxpayer's return a qualified
appraisal with respect to the property.
``(D) Household items.--For purposes of this para-
graph--
``(i) In general.--The term `household items'
includes furniture, furnishings, electronics,
appliances, linens, and other similar items.
``(ii) Excluded items.--Such term does not
include--
``(I) food,
``(II) paintings, antiques, and
other objects of art,
``(III) jewelry and gems, and
``(IV) collections.
``(E) Special rule for pass-thru entities.--In the
case of a partnership or S corporation, this paragraph
shall be applied at the entity level, except that the
deduction shall be denied at the partner or shareholder
level.''.
2006 - Pension Protection Act of 2006 (P.L. 109-280)
SEC. 1215. RECAPTURE OF TAX BENEFIT FOR CHARITABLE CONTRIBUTIONS OF
EXEMPT USE PROPERTY NOT USED FOR AN EXEMPT USE.
(a) Recapture of Deduction on Certain Sales of Exempt Use
Property.--
(1) In general.--Clause (i) of section 170(e)(1)(B) (related
to certain contributions of ordinary income and capital gain
property) is amended to read as follows:
``(i) of tangible personal property--
``(I) if the use by the donee is
unrelated to the purpose or function
constituting the basis for its exemption
under section 501 (or, in the case of a
governmental unit, to any purpose or
function described in subsection (c)),
or
``(II) which is applicable property
(as defined in paragraph (7)(C)) which
is sold, exchanged, or otherwise
disposed of by the donee before the last
day of the taxable year in which the
contribution was made and with respect
to which the donee has not made a
certification in accordance with
paragraph (7)(D),''.
(2) Dispositions after close of taxable year.--Section
170(e) <<NOTE: 26 USC 170.>> is amended by adding at the end the
following new paragraph:
``(7) Recapture of deduction on certain dispositions of
exempt use property.--
``(A) In general.--In the case of an applicable
disposition of applicable property, there shall be
included in the income of the donor of such property for
the taxable year of such donor in which the applicable
disposition occurs an amount equal to the excess (if
any) of--
``(i) the amount of the deduction allowed to
the donor under this section with respect to such
property, over
``(ii) the donor's basis in such property at
the time such property was contributed.
``(B) Applicable disposition.--For purposes of this
paragraph, the term `applicable disposition' means any
sale, exchange, or other disposition by the donee of
applicable property--
``(i) after the last day of the taxable year
of the donor in which such property was
contributed, and
``(ii) before the last day of the 3-year
period beginning on the date of the contribution
of such property,
unless the donee makes a certification in accordance
with subparagraph (D).
``(C) Applicable property.--For purposes of this
paragraph, the term `applicable property' means
charitable deduction property (as defined in section
6050L(a)(2)(A))--
``(i) which is tangible personal property the
use of which is identified by the donee as related
to the purpose or function constituting the basis
of the donee's exemption under section 501, and
``(ii) for which a deduction in excess of the
donor's basis is allowed.
``(D) Certification.--A certification meets the
requirements of this subparagraph if it is a written
statement which is signed under penalty of perjury by an
officer of the donee organization and--
``(i) which--
``(I) certifies that the use of the
property by the donee was related to the
purpose or function constituting the
basis for the donee's exemption under
section 501, and
``(II) describes how the property
was used and how such use furthered such
purpose or function, or
``(ii) which--
``(I) states the intended use of the
property by the donee at the time of the
contribution, and
``(II) certifies that such intended
use has become impossible or infeasible
to implement.''.
2006 - Pension Protection Act of 2006 (P.L. 109-280)
SEC. 1214. CHARITABLE CONTRIBUTIONS OF TAXIDERMY PROPERTY.
(a) Denial of Long-Term Capital Gain.--Subparagraph (B) of section
170(e)(1) <<NOTE: 26 USC 170.>> is amended by striking ``or'' at the end
of clause (ii), by inserting ``or'' at the end of clause (iii), and by
inserting after clause (iii) the following new clause:
``(iv) of any taxidermy property which is
contributed by the person who prepared, stuffed,
or mounted the property or by any person who paid
or incurred the cost of such preparation,
stuffing, or mounting,''.
(b) Treatment of Basis.--Subsection (f) of section 170, as amended
by this Act, is amended by adding at the end the following new
paragraph:
``(15) Special rule for taxidermy property.--
``(A) Basis.--For purposes of this section and
notwithstanding section 1012, in the case of a
charitable contribution of taxidermy property which is
made by the person who prepared, stuffed, or mounted the
property or by any person who paid or incurred the cost
of such preparation, stuffing, or mounting, only the
cost of the preparing, stuffing, or mounting shall be
included in the basis of such property.
``(B) Taxidermy property.--For purposes of this
section, the term `taxidermy property' means any work of
art which--
``(i) is the reproduction or preservation of
an animal, in whole or in part,
``(ii) is prepared, stuffed, or mounted for
purposes of recreating one or more characteristics
of such animal, and
``(iii) contains a part of the body of the
dead animal.''.
2006 - Pension Protection Act of 2006 (P.L. 109-280)
SEC. 1213. REFORM OF CHARITABLE CONTRIBUTIONS OF CERTAIN EASEMENTS IN
REGISTERED HISTORIC DISTRICTS AND REDUCED DEDUCTION FOR
PORTION OF QUALIFIED CONSERVATION CONTRIBUTION ATTRIBUTABLE
TO REHABILITATION CREDIT.
(a) Special Rules With Respect to Buildings in Registered Historic
Districts.--
(1) In general.--Paragraph (4) of section 170(h) (relating
to definition of conservation purpose) is amended by
redesignating subparagraph (B) as subparagraph (C) and by
inserting after subparagraph (A) the following new subparagraph:
``(B) Special rules with respect to buildings in
registered historic districts.--In the case of any
contribution of a qualified real property interest which
is a restriction with respect to the exterior of a
building described in subparagraph (C)(ii), such
contribution shall not be considered to be exclusively
for conservation purposes unless--
``(i) such interest--
``(I) includes a restriction which
preserves the entire exterior of the
building (including the front, sides,
rear, and height of the building), and
``(II) prohibits any change in the
exterior of the building which is
inconsistent with the historical
character of such exterior,
``(ii) the donor and donee enter into a
written agreement certifying, under penalty of
perjury, that the donee--
``(I) is a qualified organization
(as defined in paragraph (3)) with a
purpose of environmental protection,
land conservation, open space
preservation, or historic preservation,
and
``(II) has the resources to manage
and enforce the restriction and a
commitment to do so, and
``(iii) in the case of any contribution made
in a taxable year beginning after the date of the
enactment of this subparagraph, the taxpayer
includes with the taxpayer's return for the
taxable year of the contribu- tion--
``(I) a qualified appraisal (within
the meaning of subsection (f)(11)(E)) of
the qualified property interest,
``(II) photographs of the entire
exterior of the building, and
``(III) a description of all
restrictions on the development of the
building.''.
(b) Disallowance of Deduction for Structures and Land in Registered
Historic Districts.--Subparagraph (C) of section 170(h)(4), <<NOTE: 26
USC 170.>> as redesignated by subsection (a), is amended--
(1) by striking ``any building, structure, or land area
which'',
(2) by inserting ``any building, structure, or land area
which'' before ``is listed'' in clause (i), and
(3) by inserting ``any building which'' before ``is
located'' in clause (ii).
(c) Filing Fee for Certain Contributions.--Subsection (f) of section
170 (relating to disallowance of deduction in certain cases and special
rules) is amended by adding at the end the following new paragraph:
``(13) Contributions of certain interests in buildings
located in registered historic districts.--
``(A) In general.--No deduction shall be allowed
with respect to any contribution described in
subparagraph (B) unless the taxpayer includes with the
return for the taxable year of the contribution a $500
filing fee.
``(B) Contribution described.--A contribution is
described in this subparagraph if such contribution is a
qualified conservation contribution (as defined in
subsection (h)) which is a restriction with respect to
the exterior of a building described in subsection
(h)(4)(C)(ii) and for which a deduction is claimed in
excess of $10,000.
``(C) Dedication of fee.--Any fee collected under
this paragraph shall be used for the enforcement of the
provisions of subsection (h).''.
(d) Reduced Deduction for Portion of Qualified Conservation
Contribution Attributable to the Rehabilitation Credit.--Subsection (f)
of section 170, as amended by subsection (c), is amended by adding at
the end the following new paragraph:
``(14) Reduction for amounts attributable to rehabilitation
credit.--In the case of any qualified conservation contribution
(as defined in subsection (h)), the amount of the deduction
allowed under this section shall be reduced by an amount which
bears the same ratio to the fair market value of the
contribution as--
``(A) the sum of the credits allowed to the taxpayer
under section 47 for the 5 preceding taxable years with
respect to any building which is a part of such
contribution, bears to
``(B) the fair market value of the building on the
date of the contribution.''.
2006 - Pension Protection Act of 2006 (P.L. 109-280)
SEC. 1206. ENCOURAGEMENT OF CONTRIBUTIONS OF CAPITAL GAIN REAL PROPERTY
MADE FOR CONSERVATION PURPOSES.
(a) In General.--
(1) Individuals.--Paragraph (1) of section 170(b) <<NOTE: 26
USC 170.>> (relating to percentage limitations) is amended by
redesignating subparagraphs (E) and (F) as subparagraphs (F) and
(G), respectively, and by inserting after subparagraph (D) the
following new subparagraph:
``(E) Contributions of qualified conservation
contributions.--
``(i) In general.--Any qualified conservation
contribution (as defined in subsection (h)(1))
shall be allowed to the extent the aggregate of
such contributions does not exceed the excess of
50 percent of the taxpayer's contribution base
over the amount of all other charitable
contributions allowable under this paragraph.
``(ii) Carryover.--If the aggregate amount of
contributions described in clause (i) exceeds the
limitation of clause (i), such excess shall be
treated (in a manner consistent with the rules of
subsection (d)(1)) as a charitable contribution to
which clause (i) applies in each of the 15
succeeding years in order of time.
``(iii) <<NOTE: Applicability.>> Coordination
with other subparagraphs.--For purposes of
applying this subsection and subsection (d)(1),
contributions described in clause (i) shall not be
treated as described in subparagraph (A), (B),
(C), or (D) and such subparagraphs shall apply
without regard to such contributions.
``(iv) <<NOTE: Applicability.>> Special rule
for contribution of property used in agriculture
or livestock production.--
``(I) In general.--If the individual
is a qualified farmer or rancher for the
taxable year for which the contribution
is made, clause (i) shall be applied by
substituting `100 percent' for `50
percent'.
``(II) Exception.--Subclause (I)
shall not apply to any contribution of
property made after the date of the
enactment of this subparagraph which is
used in agriculture or livestock
production (or available for such
production) unless such contribution is
subject to a restriction that such
property remain available for such
production. This subparagraph shall be
applied separately with respect to
property to which subclause (I) does not
apply by reason of the preceding
sentence prior to its application to
property to which subclause (I) does
apply.
``(v) Definition.--For purposes of clause
(iv), the term `qualified farmer or rancher' means
a taxpayer whose gross income from the trade or
business of farming (within the meaning of section
2032A(e)(5)) is greater than 50 percent of the
taxpayer's gross income for the taxable year.
``(vi) Termination.--This subparagraph shall
not apply to any contribution made in taxable
years beginning after December 31, 2007.''.
(2) Corporations.--Paragraph (2) of section
170(b) <<NOTE: 26 USC 170.>> is amended to read as follows:
``(2) Corporations.--In the case of a corporation--
``(A) In general.--The total deductions under
subsection (a) for any taxable year (other than for
contributions to which subparagraph (B) applies) shall
not exceed 10 percent of the taxpayer's taxable income.
``(B) Qualified conservation contributions by
certain corporate farmers and ranchers.--
``(i) In general.--Any qualified conservation
contribution (as defined in subsection (h)(1))--
``(I) which is made by a corporation
which, for the taxable year during which
the contribution is made, is a qualified
farmer or rancher (as defined in
paragraph (1)(E)(v)) and the stock of
which is not readily tradable on an
established securities market at any
time during such year, and
``(II) which, in the case of
contributions made after the date of the
enactment of this subparagraph, is a
contribution of property which is used
in agriculture or livestock production
(or available for such production) and
which is subject to a restriction that
such property remain available for such
production,
shall be allowed to the extent the aggregate of
such contributions does not exceed the excess of
the taxpayer's taxable income over the amount of
charitable contributions allowable under
subparagraph (A).
``(ii) <<NOTE: Applicability.>> Carryover.--If
the aggregate amount of contributions described in
clause (i) exceeds the limitation of clause (i),
such excess shall be treated (in a manner
consistent with the rules of subsection (d)(2)) as
a charitable contribution to which clause (i)
applies in each of the 15 succeeding years in
order of time.
``(iii) Termination.--This subparagraph shall
not apply to any contribution made in taxable
years beginning after December 31, 2007.
``(C) Taxable income.--For purposes of this
paragraph, taxable income shall be computed without
regard to--
``(i) this section,
``(ii) part VIII (except section 248),
``(iii) any net operating loss carryback to
the taxable year under section 172,
``(iv) section 199, and
``(v) any capital loss carryback to the
taxable year under section 1212(a)(1).''.
(b) Conforming Amendments.--
(1) Paragraph (2) of section 170(d) <<NOTE: 26 USC 170.>> is
amended by striking ``subsection (b)(2)'' each place it appears
and inserting ``subsection (b)(2)(A)''.
(2) Section 545(b)(2) is amended by striking ``and (D)'' and
inserting ``(D), and (E)''.
(c) <<NOTE: 26 USC 170 note.>> Effective Date.--The amendments made
by this section shall apply to contributions made in taxable years
beginning after December 31, 2005.
2006 - Pension Protection Act of 2006 (P.L. 109-280)
SEC. 1204. EXTENSION OF MODIFICATION OF CHARITABLE DEDUCTION FOR
CONTRIBUTIONS OF BOOK INVENTORY.
(a) In General.--Section 170(e)(3)(D)(iv) (relating to termination)
is amended by striking ``2005'' and inserting ``2007''.
2006 - Pension Protection Act of 2006 (P.L. 109-280)
SEC. 1202. EXTENSION OF MODIFICATION OF CHARITABLE DEDUCTION FOR
CONTRIBUTIONS OF FOOD INVENTORY.
(a) In General.--Section 170(e)(3)(C)(iv) (relating to termination)
is amended by striking ``2005'' and inserting ``2007''.
2006 - P.L. 109-222
SEC. 204. CAPITAL GAINS TREATMENT FOR CERTAIN SELF-CREATED MUSICAL
WORKS.
(b) Limitation on Charitable Contributions.--Subparagraph (A) of
section 170(e)(1) is amended by inserting ``(determined without regard
to section 1221(b)(3))'' after ``long-term capital gain''.
(c) Effective Date.--The <<NOTE: 26 USC 170 note.>> amendments made
by this section shall apply to sales and exchanges in taxable years
beginning after the date of the enactment of this Act.
2005 - P.L. 109-135, Section 403
(gg) Amendment Related to Section 884 of the Act.--Subparagraph (B)
of section 170(f)(12) is amended by adding at the end the following new
clauses:
``(v) Whether the donee organization provided
any goods or services in consideration, in whole
or in part, for the qualified vehicle.
``(vi) A description and good faith estimate
of the value of any goods or services referred to
in clause (v) or, if such goods or services
consist solely of intangible religious benefits
(as defined in paragraph (8)(B)), a statement to
that effect.''.
2005 - Pub. L. 109-135 Sec. 403
(16) Paragraph (2) of section 170(b) is amended by
redesignating subparagraphs (C) and (D) as subparagraphs (D) and
(E), respectively, and by inserting after subparagraph (B) the
following new subparagraph:
``(C) section 199,''.
2005 - P.L. 109-73
SEC. 301. TEMPORARY SUSPENSION OF LIMITATIONS ON CHARITABLE
CONTRIBUTIONS.
(a) In General.--Except as otherwise provided in subsection (b),
section 170(b) of the Internal Revenue Code of 1986 shall not apply to
qualified contributions and such contributions shall not be taken into
account for purposes of applying subsections (b) and (d) of section 170
of such Code to other contributions.
(b) Treatment of Excess Contributions.--For purposes of section 170
of such Code--
(1) Individuals.--In the case of an individual--
(A) Limitation.--Any qualified contribution shall be
allowed only to the extent that the aggregate of such
contributions does not exceed the excess of the
taxpayer's contribution base (as defined in subparagraph
(F) of section 170(b)(1) of such Code) over the amount
of all other charitable contributions allowed under such
section 170(b)(1).
(B) Carryover.--If the aggregate amount of qualified
contributions made in the contribution year (within the
meaning of section 170(d)(1) of such Code) exceeds the
limitation of subparagraph (A), such excess shall be
added to the excess described in the portion of
subparagraph (A) of such section which precedes clause
(i) thereof for purposes of applying such section.
(2) Corporations.--In the case of a corporation--
(A) Limitation.--Any qualified contribution shall be
allowed only to the extent that the aggregate of such
contributions does not exceed the excess of the
taxpayer's taxable income (as determined under paragraph
(2) of section 170(b) of such Code) over the amount of
all other charitable contributions allowed under such
paragraph.
(B) Carryover.--
Rules <<NOTE: Applicability.>> similar to the rules of
paragraph (1)(B) shall apply for purposes of this
paragraph.
(c) Exception to Overall Limitation on Itemized Deductions.--So much
of any deduction allowed under section 170 of such Code as does not
exceed the qualified contributions paid during the taxable year shall
not be treated as an itemized deduction for purposes of section 68 of
such Code.
(d) Qualified Contributions.--
(1) In general.--For purposes of this section, the term
``qualified contribution'' means any charitable contribution (as
defined in section 170(c) of such Code)--
(A) paid during the period beginning on August 28,
2005, and ending on December 31, 2005, in cash to an
organization described in section 170(b)(1)(A) of such
Code (other than an organization described in section
509(a)(3) of such Code),
(B) in the case of a contribution paid by a
corporation, such contribution is for relief efforts
related to Hurricane Katrina, and
(C) with respect to which the taxpayer has elected
the application of this section.
(2) Exception.--Such term shall not include a contribution
if the contribution is for establishment of a new, or
maintenance in an existing, segregated fund or account with
respect to which the donor (or any person appointed or
designated by such donor) has, or reasonably expects to have,
advisory privileges with respect to distributions or investments
by reason of the donor's status as a donor.
(3) Application of election to partnerships and s
corporations.--In the case of a partnership or S corporation,
the election under paragraph (1)(C) shall be made separately by
each partner or shareholder.
SEC. 302. ADDITIONAL EXEMPTION FOR HOUSING HURRICANE KATRINA DISPLACED
INDIVIDUALS.
(a) In General.--In the case of taxable years of a natural person
beginning in 2005 or 2006, for purposes of the Internal Revenue Code of
1986, taxable income shall be reduced by $500 for each Hurricane Katrina
displaced individual of the taxpayer for the taxable year.
(b) Limitations.--
(1) Dollar limitation.--The reduction under subsection (a)
shall not exceed $2,000, reduced by the amount of the reduction
under this section for all prior taxable years.
(2) Individuals taken into account only once.--An individual
shall not be taken into account under subsection (a) if such
individual was taken into account under such subsection by the
taxpayer for any prior taxable year.
(3) Identifying information required.--An individual shall
not be taken into account under subsection (a) for a taxable
year unless the taxpayer identification number of such
individual is included on the return of the taxpayer for such
taxable year.
(c) Hurricane Katrina Displaced Individual.--For purposes of this
section, the term ``Hurricane Katrina displaced individual'' means, with
respect to any taxpayer for any taxable year, any natural person if--
(1) such person's principal place of abode on August 28,
2005, was in the Hurricane Katrina disaster area,
(2)(A) in the case of such an abode located in the core
disaster area, such person is displaced from such abode, or
(B) in the case of such an abode located outside of the core
disaster area, such person is displaced from such abode, and
(i) such abode was damaged by Hurricane Katrina, or
(ii) such person was evacuated from such abode by
reason of Hurricane Katrina, and
(3) such person is provided housing free of charge by the
taxpayer in the principal residence of the taxpayer for a period
of 60 consecutive days which ends in such taxable year.
Such term shall not include the spouse or any dependent of the taxpayer.
(d) Compensation for Housing.--No deduction shall be allowed under
this section if the taxpayer receives any rent or other amount (from any
source) in connection with the providing of such housing.
SEC. 303. INCREASE IN STANDARD MILEAGE RATE FOR CHARITABLE USE OF
VEHICLES.
Notwithstanding section 170(i) of the Internal Revenue Code of 1986,
for purposes of computing the deduction under section 170 of such Code
for use of a vehicle described in subsection (f)(12)(E)(i) of such
section for provision of relief related to Hurricane Katrina during the
period beginning on August 25, 2005, and ending on December 31, 2006,
the standard mileage rate shall be 70 percent of the standard mileage
rate in effect under section 162(a) of such Code at the time of such
use. Any increase under this section shall be rounded to the next
highest cent.
SEC. 304. MILEAGE REIMBURSEMENTS TO CHARITABLE VOLUNTEERS EXCLUDED FROM
GROSS INCOME.
(a) In General.--For purposes of the Internal Revenue Code of 1986,
gross income of an individual for taxable years ending on or after
August 25, 2005, does not include amounts received, from an organization
described in section 170(c) of such Code, as reimbursement of operating
expenses with respect to use of a passenger automobile for the benefit
of such organization in connection with providing relief relating to
Hurricane Katrina during the period beginning on August 25, 2005, and
ending on December 31, 2006. <<NOTE: Applicability.>> The preceding
sentence shall apply only to the extent that the expenses which are
reimbursed would be deductible under chapter 1 of such Code if section
274(d) of such Code were applied--
(1) by using the standard business mileage rate in effect
under section 162(a) at the time of such use, and
(2) as if the individual were an employee of an organization
not described in section 170(c) of such Code.
(b) Application to Volunteer Services Only.--Subsection (a) shall
not apply with respect to any expenses relating to the performance of
services for compensation.
(c) No Double Benefit.--No deduction or credit shall be allowed
under any other provision of such Code with respect to the expenses
excludable from gross income under subsection (a).
SEC. 305. CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF FOOD INVENTORY.
(a) In General.--Paragraph (3) of section 170(e) of the Internal
Revenue Code of <<NOTE: 26 USC 170.>> 1986 (relating to special rule for
certain contributions of inventory and other property) is amended by
redesignating subparagraph (C) as subparagraph (D) and by inserting
after subparagraph (B) the following new subparagraph:
``(C) Special rule for contributions of food
inventory.--
``(i) General rule.--
In <<NOTE: Applicability.>> the case of a
charitable contribution of food from any trade or
business of the taxpayer, this paragraph shall be
applied--
``(I) without regard to whether the
contribution is made by a C corporation,
and
``(II) only to food that is
apparently wholesome food.
``(ii) Limitation.--In the case of a taxpayer
other than a C corporation, the aggregate amount
of such contributions for any taxable year which
may be taken into account under this section shall
not exceed 10 percent of the taxpayer's aggregate
net income for such taxable year from all trades
or businesses from which such contributions were
made for such year, computed without regard to
this section.
``(iii) Apparently wholesome food.--For
purposes of this subparagraph, the term
`apparently wholesome food' has the meaning given
to such term by section 22(b)(2) of the Bill
Emerson Good Samaritan Food Donation Act (42
U.S.C. 1791(b)(2)), as in effect on the date of
the enactment of this subparagraph.
``(iv) Termination.--This subparagraph shall
not apply to contributions made after December 31,
2005.''.
SEC. 306. CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF BOOK INVENTORIES TO
PUBLIC SCHOOLS.
(a) In General.--Paragraph (3) of section 170(e) of the Internal
Revenue Code of 1986 (relating to certain contributions of ordinary
income and capital gain property), as amended by section 305, is amended
by redesignating subparagraph (D) as subparagraph (E) and by inserting
after subparagraph (C) the following new subparagraph:
``(D) Special rule for contributions of book
inventory to public schools.--
``(i) Contributions
of <<NOTE: Applicability.>> book inventory.--In
determining whether a qualified book contribution
is a qualified contribution, subparagraph (A)
shall be applied without regard to whether the
donee is an organization
described in the matter preceding clause (i) of
subparagraph (A).
``(ii) Qualified book contribution.--For
purposes of this paragraph, the term `qualified
book contribution' means a charitable contribution
of books to a public school which is an
educational organization described in subsection
(b)(1)(A)(ii) and which provides elementary
education or secondary education (kindergarten
through grade 12).
``(iii) Certification by donee.--Subparagraph
(A) shall not apply to any contribution unless (in
addition to the certifications required by
subparagraph (A) (as modified by this
subparagraph)), the donee certifies in writing
that--
``(I) the books are suitable, in
terms of currency, content, and
quantity, for use in the donee's
educational programs, and
``(II) the donee will use the books
in its educational programs.
``(iv) Termination.--This subparagraph shall
not apply to contributions made after December 31,
2005.''.
2004 - PL 108-357,Sec. 335. Section 170 (relating to charitable, etc.,
contributions and gifts), as amended by this Act, is amended by
redesignating subsection (n) as subsection (o) and by inserting after
subsection (m) the following new subsection:
"(n) Expenses Paid by Certain Whaling Captains in Support of Native
Alaskan Subsistence Whaling...".
Effective Date.--The <<NOTE: 26 USC 170 note.>> amendments
made by subsection (a) shall apply to contributions made after
December 31, 2004.
2004 - Pub. L. 108-357, Sec. 882(d). Subclause (I) of
section 170(f)(11)(A)(ii), as added by this Act, is amended by
inserting "subsection (e)(1)(B)(iii) or" before "section 1221(a)(1)".
2004 - Pub. L. 108-357, Sec. 884. Subsection (f) of section 170
(relating to disallowance of deduction in certain cases and special
rules), as amended by this Act, is amended by inserting after
paragraph (11) the following new paragraph:
"(12) Contributions of used motor vehicles, boats, and airplanes...".
Effective Date.--The <<NOTE: 26 USC 170 note.>> amendments made
by this section shall apply to contributions made after December 31, 2004.
2004 - Pub. L. 108-357, Sec. 883. Subsection (f) of section 170
(relating to disallowance of deduction in certain cases and special
rules) is amended by adding after paragraph (10) the following new
paragraph: "(11) Qualified appraisal and other documentation for
certain contributions...".
Effective Date.--The <<NOTE: 26 USC 170 note.>> amendment made
by this section shall apply to contributions made after June 3, 2004.
2004 - Pub. L. 108-357, Sec. 882(b). Section 170 is amended by
redesignating subsection (m) as subsection (n) and by
inserting after subsection (l) the following new subsection:
"(m) Certain Donee Income From Intellectual Property Treated as an
Additional Charitable Contribution...".
2004 - Pub. L. 108-357, Sec. 882(a). Subpara.(B) of section 170(e)(1)
is amended by striking ``or'' at the end of clause (i), by adding ``or''
at the end of clause (ii), and by inserting after clause (ii) the
new clause (iii).
Effective Date.--The <<NOTE: 26 USC 170 note.>> amendments made
by this section shall apply to contributions made after June 3, 2004.
2004 - Pub.L.108-311 Sec. 207(15) and (16). Section 170(g)(1)
is amended by inserting ``(determined without regard to
subsections (b)(1), (b)(2), and (d)(1)(B) thereof)'' after ``section 152'',
and Section 170(g)(3) is amended by striking ``paragraphs (1) through (8)
of section 152(a)'' and inserting ``subparagraphs (A) through (G) of
section 152(d)(2)''.
2004 - Subsec.306,Pub.L.108-311, amended Sec.170(e)(6)(G)
by inserting "2005" and striking "2003". Effective Date.--The
amendment made by this section shall apply to contributions made in
taxable years beginning after December 31, 2003.
2002 - Subsec. 417(22);Pub L.107-147 notes that changes to Sec.
170(e)
(6)(B)(iv) made by the Community Renewal Tax Relief Act of 2000
shall be applied as if it struck "in any of the grades K-12"
2000 - Subsec. (e)(6). Pub. L. 106-554, Sec. 1(a)(7) (title I,
Sec. 165(b)(2)), substituted ''educational purposes'' for
''elementary or secondary school purposes'' in heading.
Subsec. (e)(6)(A), (B). Pub. L. 106-554, Sec. 1(a)(7) (title I,
Sec. 165(a)(1)), substituted ''qualified computer contribution''
for ''qualified elementary or secondary educational contribution''
in subpar. (A) and in heading and introductory provisions of
subpar. (B).
Subsec. (e)(6)(B)(i)(III). Pub. L. 106-554, Sec. 1(a)(7) (title
I, Sec. 165(a)(2)), added subcl. (III).
Subsec. (e)(6)(B)(ii). Pub. L. 106-554, Sec. 1(a)(7) (title I,
Sec. 165(a)(3)), substituted ''3 years'' for ''2 years''.
Subsec. (e)(6)(B)(iv). Pub. L. 106-554, Sec. 1(a)(7) (title I,
Sec. 165(b)(1)), which directed the amendment of cl. (iv) by
striking ''in any grades of the K-12'', was executed by striking
out ''in any of the grades K-12'' after ''educational purposes'',
to reflect the probable intent of Congress.
Subsec. (e)(6)(B)(viii). Pub. L. 106-554, Sec. 1(a)(7) (title I,
Sec. 165(d)), added cl. (viii).
Subsec. (e)(6)(C). Pub. L. 106-554, Sec. 1(a)(7) (title I, Sec.
165(a)(1)), substituted ''qualified computer contribution'' for
''qualified elementary or secondary educational contribution'' in
introductory provisions.
Subsec. (e)(6)(D), (E). Pub. L. 106-554, Sec. 1(a)(7) (title I,
Sec. 165(e)), added subpar. (D) and redesignated former subpar. (D)
as (E). Former subpar. (E) redesignated (F).
Subsec. (e)(6)(F). Pub. L. 106-554, Sec. 1(a)(7) (title I, Sec.
165(e)), redesignated subpar. (E) as (F). Former subpar. (F)
redesignated (G).
Pub. L. 106-554, Sec. 1(a)(7) (title I, Sec. 165(c)), substituted
''December 31, 2003'' for ''December 31, 2000''.
Subsec. (e)(6)(G). Pub. L. 106-554, Sec. 1(a)(7) (title I, Sec.
165(e)), redesignated subpar. (F) as (G).
1999 - Subsec. (e)(3)(A), (4)(B). Pub. L. 106-170, Sec.
532(c)(1)(A), (B), substituted ''section 1221(a)'' for ''section
1221''.
Subsec. (f)(10). Pub. L. 106-170, Sec. 537(a), added par. (10).
1998 - Subsec. (e)(5)(D). Pub. L. 105-277 struck out heading and
text of subpar. (D). Text read as follows: ''This paragraph shall
not apply to contributions made -
''(i) after December 31, 1994, and before July 1, 1996, or
''(ii) after June 30, 1998.''
Subsec. (e)(6)(B)(iv). Pub. L. 105-206, Sec. 6004(e)(2),
substituted ''function of the donee'' for ''function of the
organization or entity''.
Subsec. (e)(6)(B)(vi), (vii). Pub. L. 105-206, Sec. 6004(e)(1),
substituted ''donee's'' for ''entity's''.
Subsec. (e)(6)(C)(ii)(I). Pub. L. 105-206, Sec. 6004(e)(3),
substituted ''a donee'' for ''an entity''.
Subsec. (e)(6)(F). Pub. L. 105-206, Sec. 6004(e)(4), substituted
''2000'' for ''1999''.
1997 - Subsec. (e)(5)(D)(ii). Pub. L. 105-34, Sec. 602(a),
substituted ''June 30, 1998'' for ''May 31, 1997''.
Subsec. (e)(6). Pub. L. 105-34, Sec. 224(a), added par. (6).
Subsec. (h)(5)(B)(ii). Pub. L. 105-34, Sec. 508(d), amended
heading and text of cl. (ii) generally. Prior to amendment, text
read as follows: ''With respect to any contribution of property in
which the ownership of the surface estate and mineral interests
were separated before June 13, 1976, and remain so separated,
subparagraph (A) shall be treated as met if the probability of
surface mining occurring on such property is so remote as to be
negligible.''
Subsec. (i). Pub. L. 105-34, Sec. 973(a), amended heading and
text of subsec. (i) generally. Prior to amendment, text read as
follows: ''For purposes of computing the deduction under this
section for use of a passenger automobile the standard mileage rate
shall be 12 cents per mile.''
1996 - Subsec. (e)(1). Pub. L. 104-188, Sec. 1316(b), inserted at
end ''For purposes of applying this paragraph in the case of a
charitable contribution of stock in an S corporation, rules similar
to the rules of section 751 shall apply in determining whether gain
on such stock would have been long-term capital gain if such stock
were sold by the taxpayer.''
Subsec. (e)(5)(D). Pub. L. 104-188, Sec. 1206(a), reenacted
heading without change and amended text generally. Prior to
amendment, text read as follows: ''This paragraph shall not apply
to contributions made after December 31, 1994.''
1993 - Subsec. (f)(8). Pub. L. 103-66, Sec. 13172(a), added par.
(8).
Subsec. (f)(9). Pub. L. 103-66, Sec. 13222(b), added par. (9).
1990 - Subsec. (h)(4)(B)(ii). Pub. L. 101-508, Sec. 11813(b)(10),
substituted ''section 47(c)(3)(B)'' for ''section 48(g)(3)(B)''.
Subsec. (i). Pub. L. 101-508, Sec. 11801(a)(11), (c)(5),
redesignated subsec. (j) as (i) and struck out former subsec. (i)
which related to rule for nonitemization of deductions, applicable
percentage for individuals, limitation for taxable years beginning
before 1985, and termination.
Subsecs. (j) to (n). Pub. L. 101-508, Sec. 11801(c)(5),
redesignated subsecs. (j) to (n) as (i) to (m), respectively.
1988 - Subsecs. (m), (n). Pub. L. 100-647 added subsec. (m) and
redesignated former subsec. (m) as (n).
1987 - Subsec. (c)(2)(D). Pub. L. 100-203 inserted ''(or in
opposition to)'' after ''on behalf of''.
1986 - Subsec. (b)(1)(C)(iv). Pub. L. 99-514, Sec. 1831,
substituted ''this paragraph'' for ''this subparagraph''.
Subsec. (e)(1)(B). Pub. L. 99-514, Sec. 301(b)(2), in closing
provisions, struck out ''40 percent ( 28/46 in the case of a
corporation) of'' before ''the amount of gain''.
Subsec. (e)(4)(B)(i). Pub. L. 99-514, Sec. 231(f), amended cl.
(i) generally. Prior to amendment, cl. (i) read as follows: ''the
contribution is to an educational organization which is described
in subsection (b)(1)(A)(ii) of this section and which is an
institution of higher education (as defined in section 3304(f)),''.
Subsecs. (k) to (m). Pub. L. 99-514, Sec. 142(d), added subsec.
(k) and redesignated former subsecs. (k) and (l) as (l) and (m),
respectively.
1984 - Subsec. (a)(3). Pub. L. 98-369, Sec. 174(b)(5)(A),
substituted ''section 267(b) or 707(b)'' for ''section 267(b)''.
Subsec. (b)(1)(A)(vii). Pub. L. 98-369, Sec. 301(c)(2)(A),
substituted ''subparagraph (E)'' for ''subparagraph (D)''.
Subsec. (b)(1)(B). Pub. L. 98-369, Sec. 301(a)(2), inserted at
end ''If the aggregate of such contributions exceeds the limitation
of the preceding sentence, such excess shall be treated (in a
manner consistent with the rules of subsection (d)(1)) as a
charitable contribution (to which subparagraph (A) does not apply)
in each of the 5 succeeding taxable years in order of time.''
Subsec. (b)(1)(B)(i). Pub. L. 98-369, Sec. 301(a)(1), substituted
''30 percent'' for ''20 percent''.
Subsec. (b)(1)(C). Pub. L. 98-369, Sec. 301(c)(2)(B), inserted
''described in subparagraph (A)'' in subpar. (C) heading, and in
text of cl. (i) substituted ''In the case of charitable
contributions described in subparagraph (A) of capital gain
property to which subsection (e)(1)(B) does not apply, the total
amount of contributions of such property which may be taken into
account under subsection (a) for any taxable year shall not exceed
30 percent of the taxpayer's contribution base for such year. For
purposes of this subsection, contributions of capital gain property
to which this subparagraph applies shall be taken into account
after all other charitable contributions (other than charitable
contributions to which subparagraph (D) applies)'' for ''In the
case of charitable contributions of capital gain property to which
subsection (e)(1)(B) does not apply, the total amount of
contributions of such property which may be taken into account
under subsection (a) for any taxable year shall not exceed 30
percent of the taxpayer's contribution base for such year. For
purposes of this subsection, contributions of capital gain property
to which this paragraph applies shall be taken into account after
all other charitable contributions''.
Subsec. (b)(1)(D) to (F). Pub. L. 98-369, Sec. 301(c)(1), added
subpar. (D) and redesignated former subpars. (D) and (E) as (E) and
(F), respectively.
Subsec. (e)(1). Pub. L. 98-369, Sec. 492(b)(1)(A), struck out in
provision following subpar. (B) ''1251(c),'' after ''1250(a)''.
Subsec. (e)(1)(B)(ii). Pub. L. 98-369, Sec. 301(c)(2)(C),
substituted ''subsection (b)(1)(E)'' for ''subsection (b)(1)(D)''.
Subsec. (e)(3)(C). Pub. L. 98-369, Sec. 492(b)(1)(B), struck out
''1251,'' after ''1250,''.
Subsec. (e)(5). Pub. L. 98-369, Sec. 301(b), added par. (5).
Subsec. (f)(7). Pub. L. 98-369, Sec. 1022(b), added par. (7).
Subsec. (h)(5)(B). Pub. L. 98-369, Sec. 1035(a), designated
existing provisions as cl. (i), inserted ''Except as provided in
clause (ii)'', and added cl. (ii).
Subsec. (j). Pub. L. 98-369, Sec. 1031(a), added subsec. (j).
Former subsec. (j) redesignated (k).
Subsec. (k). Pub. L. 98-369, Sec. 1031(a), redesignated subsec.
(j) as (k). Former subsec. (k) redesignated (l).
Subsec. (l). Pub. L. 98-369, Sec. 1032(b)(1), added par. (1) and
redesignated former pars. (1) to (8) as (2) to (9), respectively.
Pub. L. 98-369, Sec. 1031(a), redesignated subsec. (k) as (l).
1983 - Subsec. (h)(4)(B)(ii). Pub. L. 97-448 substituted
''section 48(g)(3)(B)'' for ''section 191(d)(2)''.
Subsec. (k)(8). Pub. L. 97-473 added par. (8).
1982 - Subsec. (c)(2). Pub. L. 97-248 inserted provision that
rules similar to the rules of section 501(j) of this title shall
apply for purposes of this paragraph.
Subsec. (e)(3)(A). Pub. L. 97-354, Sec. 5(a)(21)(A), substituted
''an S corporation'' for ''an electing small business corporation
within the meaning of section 1371(b)''.
Subsec. (e)(4)(D)(i). Pub. L. 97-354, Sec. 5(a)(21)(B),
substituted ''an S corporation'' for ''an electing small business
corporation (as defined in section 1371(b))''.
Subsec. (k)(7). Pub. L. 97-258 substituted ''section 4043 of
title 18, United States Code'' for ''section 2 of the Act of May
15, 1952, as amended by the Act of July 9, 1952 (31 U.S.C.
725s-4)''.
1981 - Subsec. (b)(2). Pub. L. 97-34, Sec. 263(a), increased to
10 from 5 percent deduction allowable to a corporation in any
taxable year for charitable contributions.
Subsec. (e)(4). Pub. L. 97-34, Sec. 222(a), added par. (4).
Subsec. (i). Pub. L. 97-34, Sec. 121(a), added subsec. (i).
Former subsec. (i) redesignated (j).
Subsecs. (j), (k). Pub. L. 97-34, Sec. 121(a), redesignated
former subsecs. (i) and (j) as (j) and (k), respectively.
1980 - Subsec. (f)(3). Pub. L. 96-541, Sec. 6(a), reenacted
subpar. (B), cls. (i) and (ii), substituted cl. (B)(iii) relating
to qualified conservation contribution for prior cl. (B)(iii)
relating to contribution of a lease on, option to purchase, or
easement with respect to real property granted in perpetuity to a
subsec. (b)(1)(A) organization exclusively for conservation
purposes, deleted cl. (B)(iv) respecting contribution of a
remainder interest in real property granted to a subsec. (b)(1)(A)
organization exclusively for conservation purposes, and deleted
subpar. (C) definition of ''conservation purposes'', now covered in
an expanded subsec. (h)(4)(A).
Subsecs. (h), (i). Pub. L. 96-541, Sec. 6(b), added subsec. (h)
and redesignated former subsec. (h) as (i). Former subsec. (i)
redesignated (j).
Subsec. (i)(6). Pub. L. 96-465, among other changes, inserted
references to Director of the International Communication Agency
and the Director of the United States International Development
Cooperation Agency, and substituted reference to section 25 of the
State Department Basic Authorities Act of 1956 for reference to
section 1021(e) of the Foreign Service Act of 1946.
Subsec. (j). Pub. L. 96-541, Sec. 6(b), redesignated former
subsec. (i) as (j).
1978 - Subsec. (e)(1)(B). Pub. L. 95-600 substituted ''40
percent'' for ''50 percent'' and '' 28/46'' for ''62 1/2 percent''.
1977 - Subsec. (f)(3)(B)(iii). Pub. L. 95-30 substituted ''real
property granted in perpetuity to an organization'' for ''real
property of not less than 30 years' duration granted to an
organization''.
1976 - Subsec. (a). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck
out ''or his delegate'' after ''Secretary''.
Subsec. (b)(1)(A)(vii). Pub. L. 94-455, Sec. 1901(a)(28)(A)(iii),
substituted ''subparagraph (D)'' for ''subparagraph (E)'' after
''described in''.
Subsec. (b)(1)(B)(ii). Pub. L. 94-455, Sec. 1901(a)(28)(A)(iv),
substituted ''subparagraph (C)'' for ''subparagraph (D)'' after
''without regard to''.
Subsec. (b)(1)(C). Pub. L. 94-455, Sec. 1901(a)(28)(A)(ii),
struck out subpar. (C) which related to unlimited deductions for
certain individuals, redesignated subpar. (D) as (C) and, as so
redesignated, Sec. 1906(b)(13)(A), struck out ''or his delegate''
after ''Secretary'' in cl. (iii).
Subsec. (b)(1)(D) to (F). Pub. L. 94-455, Sec.
1901(a)(28)(A)(ii), redesignated subpars. (D) to (F) as (C) to (E),
respectively.
Subsec. (b)(2). Pub. L. 95-455, Sec. 1052(c)(2), struck out
subpar. (D) which related to a special deduction for Western
Hemisphere trade corporations, and redesignated subpar. (E) as (D).
Subsec. (c). Pub. L. 94-455, Sec. 1901(a)(28)(A)(v), substituted
''subsection (g)'' for ''subsection (h)'' after ''amount treated
under''.
Subsec. (c)(2)(B). Pub. L. 94-455, Sec. 1313(b)(1), inserted ''or
to foster national or international amateur sports competition (but
only if no part of its activities involves the provision of
athletic facilities or equipment)'' after ''or educational
purposes''.
Subsec. (c)(2)(D). Pub. L. 94-445, Sec. 1307(d)(1)(B)(i),
substituted ''which is not disqualified for tax exemption under
section 501(c)(3) by reason of attempting to influence
legislation'' for ''no substantial part of the activities of which
is carrying on propaganda, or otherwise attempting to influence
legislation'' after ''(D)''.
Subsec. (d)(1)(A). Pub. L. 94-455, Sec. 1901(a)(28)(B), struck
out ''(30 percent in the case of a contribution year beginning
before January 1, 1970)'' after ''exceeds 50 percent''.
Subsec. (e)(1). Pub. L. 94-455, Sec. 205(c)(1)(A), substituted
''1252(a), or 1254(a)'' for ''or 1252(a)'' after ''1251(c)''.
Subsec. (e)(1)(B)(ii). Pub. L. 94-455, Sec. 1901(a)(28)(A)(vi),
substituted ''subsection (b)(1)(D)'' for ''subsection (b)(1)(E)''
after ''foundation described in''.
Subsec. (e)(2). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out
''or his delegate'' after ''Secretary''.
Subsec. (e)(3). Pub. L. 94-455, Sec. 2135(a), added par. (3).
Subsec. (f)(2). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out
''or his delegate'' after ''Secretary''.
Subsec. (f)(3). Pub. L. 94-455, Sec. 2124(e)(1), added subpars.
(B)(iii), (iv), and (C).
Subsec. (f)(4). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out
''or his delegate'' after ''Secretary''.
Subsec. (f)(6). Pub. L. 94-455, Sec. 1307(c), 1901(a)(28)(A)(i),
added par. (6). Former par. (6), which related to the partial
reduction of unlimited deduction and definitions for transitional
income and deduction percentages, was struck out. Section
1901(a)(28)(A)(i) of Pub. L. 94-455 struck out par. (6) a second
time.
Subsec. (g). Pub. L. 94-455, Sec. 1901(a)(28)(A)(i), struck out
subsec. (g) which related to application of unlimited charitable
contribution deductions allowed for taxable years beginning before
January 1, 1975, and redesignated subsecs. (h), (i), and (j) as
(g), (h), and (i), respectively. Section 1901(a)(28)(A)(i) also
struck out former subsec. (f)(6) but this direction was not
executed as such former subsec. (f)(6) had previously been stricken
by section 1307(c) of Pub. L. 94-455.
Subsec. (g)(1)(B). Pub. L. 94-455, Sec. 1901(b)(8)(A),
substituted ''educational organization described in section
170(b)(1)(A)(ii)'' for ''educational institution (as defined in
section 151(e)(4)'' after ''grade at an''.
Subsec. (h). Pub. L. 94-455, Sec. 1901(a)(28)(A)(i), (C),
redesignated subsec. (i) as (h), and struck out ''64 Stat. 996''
after ''Act of 1950''. Former subsec. (h) redesignated (g).
Subsec. (i). Pub. L. 94-455, Sec. 1901(a)(28)(A)(i), (D),
redesignated subsec. (j) as (i) and substituted ''6973 of title 10,
United States Code'' for ''3 of the Act of March 31, 1944 (58 Stat.
135; 34 U.S.C. 1115b)'' after ''see section'' in par. (5); struck
out par. (6) relating to gifts to library of Post Office
Department; struck out ''60 Stat. 924'' after ''1946'' in par. (7);
substituted ''as amended by the Act of July 9, 1952 (3 U.S.C.
725s-4)'' for ''(66 Stat. 73, as amended by Act of July 9, 1952, 66
Stat. 479, 31 U.S.C. 725s-4)'' after ''May 15, 1952'' in par. (8);
and redesignated pars. (7) and (8) as pars. (6) and (7),
respectively. Former subsec. (i) redesignated (h).
Subsec. (j). Pub. L. 94-455, Sec. 1901(a)(28)(A)(i), redesignated
subsec. (j) as (i).
1969 - Subsec. (a)(3). Pub. L. 91-172, Sec. 201(a)(1)(B), added
par. (3).
Subsec. (b). Pub. L. 91-172, Sec. 201(a)(1)(B), (h)(1), increased
the general limitation on the charitable contributions deduction
for individual taxpayers from 30 percent of adjusted gross income
to 50 percent of his contribution base and provided that where a
taxpayer makes a contribution to a public charity of property which
has appreciated in value the taxpayer could deduct such
contributions of property under the 50 percent limitation if he
elects to take the unrealized appreciation in value into account
for the tax purposes, the unlimited charitable deduction is phased
out over a 5-year period and contributions to a private operating
foundation and contributions to a private nonoperating foundation
distributing such contributions to public charities or private
operating foundations within two and half months following the year
of receipt are also subjected to 50 percent limitation (30 percent
in the case of gifts of appreciated property), and, in par. (1)(C),
inserted provisions relating to the determination of the amount of
charitable contributions and taxes paid by a married individual who
previously filed a joint return with a former deceased spouse.
Subsec. (c). Pub. L. 91-172, Sec. 201(a)(1)(B), struck out
references to ''Territory'' in pars. (1) and (2)(A), and inserted
reference to participation in or intervention in any political
campaign on behalf of any candidate for public office in par.
(2)(D).
Subsec. (d). Pub. L. 91-172, Sec. 201(a)(1)(B), added subsec. (d)
consisting of provisions substantially transferred from subsec. (b)
in the general amendment of subsec. (b) by Pub. L. 91-172. Former
subsec. (d) redesignated (b).
Subsec. (e). Pub. L. 91-172, Sec. 201(a)(1)(B), substituted
provisions covering certain contributions of ordinary income and
capital gain property for provisions setting out a special rule for
charitable contributions.
Subsec. (f). Pub. L. 91-172, Sec. 201(a)(1)(B), substituted
provisions for the disallowance of the deduction in specified cases
for provision covering future interests in tangible personal
property.
Subsec. (g). Pub. L. 91-172, Sec. 201(a)(2)(A), substituted
''subsection (d)(1)'' for ''subsection (b)(5)'' in two places in
par. (1) and struck out par. (2)(B) covering contributions to
organizations substantially more than half of the assets and the
total income were devoted to charitable purposes.
Subsec. (h). Pub. L. 91-172, Sec. 201(a)(1)(A), redesignated
subsec. (d) as (h). Former subsec. (h) redesignated (i).
Subsec. (i). Pub. L. 91-172, Sec. 101(j)(2), 201(a)(1)(A),
redesignated former subsec. (h) as (i), struck out par. (1)
covering disallowance of deductions for gifts to charitable
organizations engaging in prohibited transactions, and removed the
par. (2) designation from the provisions covering disallowance of
deductions for use of communist controlled organizations. Former
subsec. (i) redesignated (j).
Subsec. (j). Pub. L. 91-172, Sec. 201(a)(1)(A), redesignated
former subsec. (i) as (j).
1966 - Subsec. (e). Pub. L. 89-570 inserted reference to section
617(d)(1).
1964 - Subsec. (b)(1)(A)(v), (vi), (2), (5). Pub. L. 88-272, Sec.
209 (a), (c)(1), (d)(1), added cls. (v) and (vi) in par. (1)(A),
and par. (5), and in par. (2), extended the 2-year carryforward of
unused charitable contributions to 5 years and changed the method
of computation by including the aggregate of the excess
contributions made in taxable years before the contribution year,
in cl. (i), and references to third, fourth or fifth succeeding
years in cl. (ii).
Subsec. (e). Pub. L. 88-272, Sec. 231(b)(1), substituted
''certain property'' for ''section 1245 property'' in heading, and
inserted reference to section 1250(a) in text.
Subsec. (f). Pub. L. 88-272, Sec. 209(e), added subsec. (f).
Former subsec. (f) redesignated (h).
Subsec. (g). Pub. L. 88-272, Sec. 209(b), added subsec. (g).
Former subsec. (g) redesignated (i).
Subsecs. (h), (i). Pub. L. 88-272, Sec. 209(e), redesignated
former subsecs. (f) and (g) as (h) and (i), respectively.
1962 - Subsec. (b)(1)(A)(iv). Pub. L. 87-858, Sec. 2(a), added
cl. (iv).
Subsec. (b)(1)(B). Pub. L. 87-858, Sec. 2(b), substituted ''any
charitable contributions described in subparagraph (A)'' for ''any
charitable contributions to the organizations described in clauses
(i), (ii), and (iii)''.
Subsecs. (e) to (g). Pub. L. 87-834 added subsec. (e) and
redesignated former subsecs. (e) and (f) as (f) and (g),
respectively.
1960 - Subsec. (c). Pub. L. 86-779, Sec. 7(a)(1), inserted
sentence additionally defining ''charitable contribution'' for
purposes of the section.
Subsecs. (d) to (f). Pub. L. 86-779, Sec. 7(a)(2), added subsec.
(d) and redesignated former subsecs. (d) and (e) as (e) and (f),
respectively.
1958 - Subsec. (b)(1)(C). Pub. L. 85-866, Sec. 10(a), inserted
sentence allowing substitution, in lieu of amount of tax paid
during year, amount of tax paid in respect of such year, provided
amount so included in the year in respect of which payment was made
be not included in any other year.
Subsec. (b)(3). Pub. L. 85-866, Sec. 11, added par. (3).
Subsec. (b)(4). Pub. L. 85-866, Sec. 12, added par. (4).
1956 - Subsec. (b)(1)(A)(iii). Act Aug. 7, 1956, Sec. 1, provided
for the allowance, as deductions, of contributions to medical
research organizations.
Change of Name
CHANGE OF NAME
International Communication Agency, and Director thereof,
redesignated United States Information Agency, and Director
thereof, by section 303 of Pub. L. 97-241, title III, Aug. 24,
1982, 96 Stat. 291, set out as a note under section 1461 of Title
22, Foreign Relations and Intercourse. United States Information
Agency (other than Broadcasting Board of Governors and
International Broadcasting Bureau) abolished and functions
transferred to Secretary of State, see sections 6531 and 6532 of
Title 22.
Miscellaneous
EFFECTIVE DATE OF 2007 AMENDMENT
(j) Effective <<NOTE: 26 USC 170 note.>> Date.--The amendments made
by this section shall take effect as if included in the provisions of
the Pension Protection Act of 2006 to which they relate.
EFFECTIVE DATE OF 2006 AMENDMENT
2006 - Tax Relief and Health Care Act of 2006 (P.L. 109-432)
SEC. 116(a)(2) <<NOTE: 26 USC 170 note.>> Effective date.--The
amendment made by paragraph (1) shall apply to contributions
made in taxable years beginning after December 31, 2005.
(b)(3) <<NOTE: 26 USC 170 note.>> Effective date.--The
amendments made by this subsection shall apply to taxable years
beginning after December 31, 2005.
EFFECTIVE DATE OF 2006 AMENDMENT
2006 - Pension Protection Act of 2006 (P.L. 109-280)
SEC. 1234. TREATMENT OF CHARITABLE CONTRIBUTION DEDUCTIONS TO DONOR
ADVISED FUNDS.
(d) Effective Date.--The <<NOTE: 26 USC 170 note.>> amendments made
by this section shall apply to contributions made after the date which
is 180 days after the date of the enactment of this Act.
EFFECTIVE DATE OF 2006 AMENDMENT
2006 - Pension Protection Act of 2006 (P.L. 109-280)
Section 1219(e) <<NOTE: Applicability. 26 USC 170 note.>> Effective Dates.--
(1) Misstatement penalties.--Except as provided in paragraph
(3), the amendments made by subsection (a) shall apply to
returns filed after the date of the enactment of this Act.
(2) Appraiser provisions.--Except as provided in paragraph
(3), the amendments made by subsections (b), (c), and
(d) shall apply to appraisals prepared with respect to returns
or submissions filed after the date of the enactment of this
Act.
(3) Special rule for certain easements.--In the case of a
contribution of a qualified real property interest which is a
restriction with respect to the exterior of a building described
in section 170(h)(4)(C)(ii) of the Internal Revenue Code of
1986, and an appraisal with respect to the contribution, the
amendments made by subsections (a) and (b) shall apply to
returns filed after July 25, 2006.
EFFECTIVE DATE OF 2006 AMENDMENT
2006 - Pension Protection Act of 2006 (P.L. 109-280)
Section 1218(d) <<NOTE: 26 USC 170 note.>> Effective Date.--The amendments made
by this section shall apply to contributions, bequests, and gifts made
after the date of the enactment of this Act.
EFFECTIVE DATE OF 2006 AMENDMENT
2006 - Pension Protection Act of 2006 (P.L. 109-280)
SEC. 1217. MODIFICATION OF RECORDKEEPING REQUIREMENTS FOR CERTAIN
CHARITABLE CONTRIBUTIONS.
EFFECTIVE DATE OF 2006 AMENDMENT
2006 - Pension Protection Act of 2006 (P.L. 109-280)
SEC. 1216. LIMITATION OF DEDUCTION FOR CHARITABLE CONTRIBUTIONS OF
CLOTHING AND HOUSEHOLD ITEMS.
Section 1216(b) <<NOTE: 26 USC 170 note.>> Effective Date.--The amendment made
by this section shall apply to contributions made after the date of
enactment of this Act.
EFFECTIVE DATE OF 2006 AMENDMENT
2006 - Pension Protection Act of 2006 (P.L. 109-280)
Section 1215 (d) Effective Date.--
(1) <<NOTE: 26 USC 170 note.>> Recapture.--The amendments
made by subsection (a) shall apply to contributions after
September 1, 2006.
EFFECTIVE DATE OF 2006 AMENDMENT
2006 - Pension Protection Act of 2006 (P.L. 109-280)
(c) <<NOTE: 26 USC 170 note.>> Effective Date.--The amendment made
by this section shall apply to contributions made after July 25, 2006.
EFFECTIVE DATE OF 2006 AMENDMENT
2006 - Pension Protection Act of 2006 (P.L. 109-280)
Section 1213(e) <<NOTE: 26 USC 170 note.>> Effective Dates.--
(1) Special rules for buildings in registered historic
districts.--The amendments made by subsection (a) shall apply to
contributions made after July 25, 2006.
(2) Disallowance of deduction for structures and land;
reduction for rehabilitation credit.--The amendments made by
subsections (b) and (d) shall apply to contributions made after
the date of the enactment of this Act.
(3) Filing fee.--The amendment made by subsection (c) shall
apply to contributions made 180 days after the date of the
enactment of this Act.
EFFECTIVE DATE OF 2006 AMENDMENT
2006 - Pension Protection Act of 2006 (P.L. 109-280)
SEC. 1206. ENCOURAGEMENT OF CONTRIBUTIONS OF CAPITAL GAIN REAL PROPERTY
MADE FOR CONSERVATION PURPOSES.
(c) <<NOTE: 26 USC 170 note.>> Effective Date.--The amendments made
by this section shall apply to contributions made in taxable years
beginning after December 31, 2005.
EFFECTIVE DATE OF 2006 AMENDMENT
2006 - Pension Protection Act of 2006 (P.L. 109-280)
SEC. 1204. EXTENSION OF MODIFICATION OF CHARITABLE DEDUCTION FOR
CONTRIBUTIONS OF BOOK INVENTORY.
(b) <<NOTE: 26 USC 170 note.>> Effective Date.--The amendment made
by this section shall apply to contributions made after December 31,
2005.
EFFECTIVE DATE OF 2006 AMENDMENT
2006 - Pension Protection Act of 2006 (P.L. 109-280)
SEC. 1202. EXTENSION OF MODIFICATION OF CHARITABLE DEDUCTION FOR
CONTRIBUTIONS OF FOOD INVENTORY.
(b) <<NOTE: 26 USC 170 note.>> Effective Date.--The amendment made
by this section shall apply to contributions made after December 31,
2005.
EFFECTIVE DATE OF 2006 AMENDMENT
P.L. 109-222
SEC. 204. CAPITAL GAINS TREATMENT FOR CERTAIN SELF-CREATED MUSICAL
WORKS.
(c) Effective Date.--The <<NOTE: 26 USC 170 note.>> amendments made
by this section shall apply to sales and exchanges in taxable years
beginning after the date of the enactment of this Act.
EFFECTIVE DATE OF 2005 AMENDMENT
P.L. 109-73
Section 305(b) Effective Date.--The <<NOTE: 26 USC 170 note.>> amendment made
by this section shall apply to contributions made on or after August 28,
2005, in taxable years ending after such date.
Section 306(b) Effective Date.--The <<NOTE: 26 USC 170 note.>> amendments made
by this section shall apply to contributions made on or after August 28,
2005, in taxable years ending after such date.
EFFECTIVE AND TERMINATION DATES OF 2001 AMENDMENT
Amendment by Pub. L. 107-16 applicable to estates of decedents
dying after Dec. 31, 2009, see section 542(f)(1) of Pub. L. 107-16,
set out as a note under section 121 of this title.
Amendment by Pub. L. 107-16 inapplicable to estates of decedents
dying, gifts made, or generation skipping transfers, after Dec. 31,
2010, and the Internal Revenue Code of 1986 to be applied and
administered to such estates, gifts, and transfers as if such
amendment had never been enacted, see section 901 of Pub. L.
107-16, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 2000 AMENDMENT
Pub. L. 106-554, Sec. 1(a)(7) (title I, Sec. 165(f)), Dec. 21,
2000, 114 Stat. 2763, 2763A-627, provided that: ''The amendments
made by this section (amending this section) shall apply to
contributions made after December 31, 2000.''
EFFECTIVE DATE OF 1999 AMENDMENT
Pub. L. 106-170, title V, Sec. 532(d), Dec. 17, 1999, 113 Stat.
1931, provided that: ''The amendments made by this section
(amending this section and sections 198, 263A, 267, 341, 367, 475,
543, 751, 775, 818, 856, 857, 864, 865, 871, 954, 988, 995, 1017,
1092, 1221, 1231, 1234, 1256, 1362, 1397B, 4662, and 7704 of this
title) shall apply to any instrument held, acquired, or entered
into, any transaction entered into, and supplies held or acquired
on or after the date of the enactment of this Act (Dec. 17,
1999).''
Pub. L. 106-170, title V, Sec. 537(b), Dec. 17, 1999, 113 Stat.
1938, provided that:
''(1) In general. - Except as otherwise provided in this section
(amending this section), the amendment made by this section shall
apply to transfers made after February 8, 1999.
''(2) Excise tax. - Except as provided in paragraph (3) of this
subsection, section 170(f)(10)(F) of the Internal Revenue Code of
1986 (as added by this section) shall apply to premiums paid after
the date of the enactment of this Act (Dec. 17, 1999).
''(3) Reporting. - Clause (iii) of such section 170(f)(10)(F)
shall apply to premiums paid after February 8, 1999 (determined as
if the tax imposed by such section applies to premiums paid after
such date).''
EFFECTIVE DATE OF 1998 AMENDMENTS
Pub. L. 105-277, div. J, title I, Sec. 1004(a)(2), Oct. 21,
1998, 112 Stat. 2681-888, provided that: ''The amendment made by
paragraph (1) (amending this section) shall apply to contributions
made after June 30, 1998.''
Amendment by Pub. L. 105-206 effective, except as otherwise
provided, as if included in the provisions of the Taxpayer Relief
Act of 1997, Pub. L. 105-34, to which such amendment relates, see
section 6024 of Pub. L. 105-206, set out as a note under section 1
of this title.
EFFECTIVE DATE OF 1997 AMENDMENT
Section 224(b) of Pub. L. 105-34 provided that: ''The amendment
made by this section (amending this section) shall apply to taxable
years beginning after December 31, 1997.''
Section 508(e)(2) of Pub. L. 105-34 provided that: ''The
amendments made by subsections (c) and (d) (amending this section
and section 2032A of this title) shall apply to easements granted
after December 31, 1997.''
Section 602(b) of Pub. L. 105-34 provided that: ''The amendment
made by subsection (a) (amending this section) shall apply to
contributions made after May 31, 1997.''
Section 973(b) of Pub. L. 105-34 provided that: ''The amendment
made by subsection (a) (amending this section) shall apply to
taxable years beginning after December 31, 1997.''
EFFECTIVE DATE OF 1996 AMENDMENT
Section 1206(b) of Pub. L. 104-188 provided that: ''The amendment
made by this section (amending this section) shall apply to
contributions made after June 30, 1996.''
Section 1316(f) of Pub. L. 104-188 provided that: ''The
amendments made by this section (amending this section and sections
404, 512, 1042, and 1361 of this title) shall apply to taxable
years beginning after December 31, 1997.''
EFFECTIVE DATE OF 1993 AMENDMENT
Section 13172(b) of Pub. L. 103-66 provided that: ''The
provisions of this section (amending this section) shall apply to
contributions made on or after January 1, 1994.''
Amendment by section 13222(b) of Pub. L. 103-66 applicable to
amounts paid or incurred after Dec. 31, 1993, see section 13222(e)
of Pub. L. 103-66 set out as a note under section 162 of this
title.
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by section 11813(b)(10) of Pub. L. 101-508 applicable
to property placed in service after Dec. 31, 1990, but not
applicable to any transition property (as defined in section 49(e)
of this title), any property with respect to which qualified
progress expenditures were previously taken into account under
section 46(d) of this title, and any property described in section
46(b)(2)(C) of this title, as such sections were in effect on Nov.
4, 1990, see section 11813(c) of Pub. L. 101-508, set out as a note
under section 29 of this title.
EFFECTIVE DATE OF 1988 AMENDMENT
Section 6001(b) of Pub. L. 100-647 provided that:
''(1) In general. - The amendment made by this section (amending
this section) shall apply to taxable years beginning after December
31, 1983.
''(2) Waiver of statute of limitations. - If on the date of the
enactment of this Act (Nov. 10, 1988) (or at any time within 1 year
after such date of enactment) refund or credit of any overpayment
of tax resulting from the application of section 170(m) of the 1986
Code (as added by subsection (a)) is barred by any law or rule of
law, refund or credit of such overpayment shall, nevertheless, be
made or allowed if claim therefore (sic) is filed before the date 1
year after the date of the enactment of this Act.''
EFFECTIVE DATE OF 1987 AMENDMENT
Section 10711(c) of Pub. L. 100-203 provided that: ''The
amendments made by this section (amending this section and sections
501, 504, 2055, 2106, and 2522 of this title) shall apply with
respect to activities after the date of the enactment of this Act
(Dec. 22, 1987).''
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by section 142(d) of Pub. L. 99-514 applicable to
taxable years beginning after Dec. 31, 1986, see section 151(a) of
Pub. L. 99-514, set out as a note under section 1 of this title.
Amendment by section 231(f) of Pub. L. 99-514 applicable to
taxable years beginning after Dec. 31, 1985, see section 231(g) of
Pub. L. 99-514, set out as a note under section 41 of this title.
Amendment by section 301(b)(2) of Pub. L. 99-514 applicable to
taxable years beginning after Dec. 31, 1986, see section 301(c) of
Pub. L. 99-514, set out as a note under section 62 of this title.
Amendment by section 1831 of Pub. L. 99-514 effective, except as
otherwise provided, as if included in the provisions of the Tax
Reform Act of 1984, Pub. L. 98-369, div. A, to which such
amendment relates, see section 1881 of Pub. L. 99-514, set out as a
note under section 48 of this title.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by section 174(b)(5)(A) of Pub. L. 98-369, applicable
to transactions after Dec. 31, 1983, in taxable years ending after
that date, see section 174(c)(2)(A) of Pub. L. 98-369, set out as a
note under section 267 of this title.
Section 301(d) of Pub. L. 98-369 provided that:
''(1) Subsections (a) and (c). - The amendments made by
subsections (a) and (c) (amending this section) shall apply to
contributions made in taxable years ending after the date of the
enactment of this Act (July 18, 1984).
''(2) Subsection (b). - The amendment made by subsection (b)
(amending this section) shall apply to contributions made after the
date of the enactment of this Act (July 18, 1984) in taxable years
ending after such date.''
Section 492(d) of Pub. L. 98-369 provided that: ''The amendments
made by this section (amending this section and sections 341, 453B,
751, and 1252 of this title and repealing section 1251 of this
title) shall apply to taxable years beginning after December 31,
1983.''
Amendment by section 1022(b) of Pub. L. 98-369 applicable to
reformations after Dec. 31, 1978, except inapplicable to any
reformation to which section 2055(e)(3) of this title as in effect
before July 18, 1984, applies, see section 1022(e)(1) of Pub. L.
98-369, set out as a note under section 2055 of this title.
Section 1031(b) of Pub. L. 98-369 provided that: ''The amendments
made by subsection (a) (amending this section) shall apply to
taxable years beginning after December 31, 1984.''
Section 1032(c) of Pub. L. 98-369 provided that: ''The amendments
made by subsections (a) and (b) (amending this section and sections
501, 2055, and 2522 of this title) shall apply to taxable years
beginning after the date of the enactment of this Act (July 18,
1984).''
Section 1035(b) of Pub. L. 98-369 provided that: ''The amendment
made by subsection (a) (amending this section) shall apply to
contributions made after the date of the enactment of this Act
(July 18, 1984).''
EFFECTIVE DATE OF 1983 AMENDMENTS
For effective date of amendment by Pub. L. 97-473, see section
204(1) of Pub. L. 97-473, set out as an Effective Date note under
section 7871 of this title.
Amendment by title I of Pub. L. 97-448 effective, except as
otherwise provided, as if it had been included in the provision of
the Economic Recovery Tax Act of 1981, Pub. L. 97-34, to which such
amendment relates, see section 109 of Pub. L. 97-448, set out as a
note under section 1 of this title.
EFFECTIVE DATE OF 1982 AMENDMENTS
Amendment by Pub. L. 97-354 applicable to taxable years beginning
after Dec. 31, 1982, see section 6(a) of Pub. L. 97-354, set out as
an Effective Date note under section 1361 of this title.
Amendment by Pub. L. 97-248 effective Oct. 5, 1976, see section
286(c) of Pub. L. 97-248, set out as a note under section 501 of
this title.
EFFECTIVE DATE OF 1981 AMENDMENT
Section 121(d) of Pub. L. 97-34 provided that: ''The amendments
made by this section (amending this section and sections 3, 57, and
63 of this title) shall apply to contributions made after December
31, 1981, in taxable years beginning after such date.''
Section 222(b) of Pub. L. 97-34 provided that: ''The amendment
made by subsection (a) (amending this section) shall apply to
charitable contributions made after the date of the enactment of
this Act (Aug. 13, 1981), in taxable years ending after such
date.''
Section 263(b) of Pub. L. 97-34 provided that: ''The amendment
made by this section (amending this section) shall apply to taxable
years beginning after December 31, 1981.''
EFFECTIVE DATE OF 1980 AMENDMENTS
Section 6(d) of Pub. L. 96-541 provided that: ''The amendments
made by subsections (a) and (b) (amending this section) shall apply
to transfers made after the date of the enactment of this Act (Dec.
17, 1980) in taxable years ending after such date.''
Amendment by Pub. L. 96-465 effective Feb. 15, 1981, except as
otherwise provided, see section 2403 of Pub. L. 96-465, set out as
an Effective Date note under section 3901 of Title 22, Foreign
Relations and Intercourse.
EFFECTIVE DATE OF 1978 AMENDMENT
Section 402(c)(2) of Pub. L. 95-600 provided that: ''The
amendment made by subsection (b)(2) (amending this section by
substituting ''40 percent'' for ''50 percent'') shall apply to
contributions made after October 31, 1978.''
Section 403(d)(2) of Pub. L. 95-600 provided that: ''The
amendment made by paragraph (1) of subsection (c) (amending this
section by substituting '' 28/46'' for ''62 1/2 percent'') shall
apply to gifts made after December 31, 1978.''
EFFECTIVE DATE OF 1977 AMENDMENT
Section 309(b)(1) of Pub. L. 95-30, as amended by Pub. L. 96-541,
Sec. 6(c), Dec. 17, 1980, 94 Stat. 3207, provided that: ''The
amendment made by subsection (a) (amending this section) shall
apply with respect to contributions or transfers made after June
13, 1977.''
EFFECTIVE DATE OF 1976 AMENDMENT
Section 1052(d) of Pub. L. 94-455 provided that: ''The amendments
made by subsection (a) and paragraph (1) of subsection (c)
(amending section 922 of this title) shall apply with respect to
taxable years beginning after December 31, 1975. The amendments
made by subsection (b) (repealing sections 921 and 922 of this
title) and by subsection (c) (other than paragraph (1)) (amending
this section and sections 172, 907, 1503, and 6091 of this title)
shall apply with respect to taxable years beginning after December
31, 1979.''
Amendment by section 1307 (d)(1)(B)(i), (c) of Pub. L. 94-455
effective for taxable years beginning after Dec. 31, 1976, see
section 1307(e) of Pub. L. 94-455, set out as a note under section
501 of this title.
Amendment by section 1313(b)(1) of Pub. L. 94-455 effective Oct.
5, 1976, see section 1313(e) of Pub. L. 94-455, set out as a note
under section 501 of this title.
Amendment by section 1901(a)(28) of Pub. L. 94-455 effective for
taxable years beginning after Dec. 31, 1976, see section 1901(d) of
Pub. L. 94-455, set out as a note under section 2 of this title.
Section 2124(e)(4) of Pub. L. 94-455, as amended by Pub. L.
95-30, title III, Sec. 309(b)(2), May 23, 1977, 91 Stat. 154; Pub.
L. 96-541, Sec. 6(c), Dec. 17, 1980, 94 Stat. 3207, provided that:
''The amendments made by this subsection (amending this section and
sections 2055 and 2522 of this title) shall apply with respect to
contributions or transfers made after June 13, 1976.''
Section 2135(b) of Pub. L. 94-455 provided that: ''The amendment
made by this section (amending this section) applies to charitable
contributions made after the date of enactment of this Act (Oct. 4,
1976), in taxable years ending after such date.''
EFFECTIVE DATE OF 1969 AMENDMENT
Amendment by section 101(j)(2) of Pub. L. 91-172 to take effect
on Jan. 1, 1970, see section 101(k)(1) of Pub. L. 91-172, set out
as an Effective Date note under section 4940 of this title.
Section 201(g) of Pub. L. 91-172, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
''(1)(A) Except as provided in subparagraphs (B) and (C), the
amendments made by subsection (a) (amending this section and
sections 545, 556, and 809 of this title) shall apply to taxable
years beginning after December 31, 1969.
''(B) Subsections (e) and (f)(1) of section 170 of the Internal
Revenue Code of 1986 (formerly I.R.C. 1954) (as amended by
subsection (a)) shall apply to contributions paid after December
31, 1969, except that, with respect to a letter or memorandum or
similar property described in section 1221(3) of such Code (as
amended by section 514 of this Act), such subsection (e) shall
apply to contributions paid after July 25, 1969.
''(C) Paragraphs (2), (3), and (4) of section 170(f) of such Code
(as amended by subsection (a)) shall apply to transfers in trust
and contributions made after July 31, 1969.
''(D) For purposes of applying section 170(d) of such Code (as
amended by subsection (a)) with respect to contributions paid in a
taxable year beginning before January 1, 1970, subsection
(b)(1)(D), subsection (e), and paragraphs (1), (2), (3), and (4) of
subsection (f) of section 170 of such Code shall not apply.
''(2) The amendments made by subsection (b) (amending section 642
of this title) shall apply with respect to amounts paid,
permanently set aside, or to be used for a charitable purpose in
taxable years beginning after December 31, 1969, except that
section 642(c)(5) of the Internal Revenue Code of 1986 (as added by
subsection (b)) shall apply to transfers in trust made after July
31, 1969.
''(3) The amendment made by subsection (c) (amending section 673
of this title) shall apply to transfers in trust made after April
22, 1969.
''(4)(A) Except as provided in subparagraphs (B) and (C), the
amendments made by paragraphs (1) and (2) of subsection (d)
(amending sections 2055 and 2126 of this title) shall apply in the
case of decedents dying after December 31, 1969.
''(B) Such amendments shall not apply in the case of property
passing under the terms of a will executed on or before October 9,
1969 -
''(i) if the decedent dies before October 9, 1972, without
having republished the will after October 9, 1969, by codicil or
otherwise,
''(ii) if the decedent at no time after October 9, 1969, had
the right to change the portions of the will which pertain to the
passing of the property to, or for the use of, an organization
described in section 2055(a) (section 2055(a) of this title), or
''(iii) if the will is not republished by codicil or otherwise
before October 9, 1972, and the decedent is on such date and at
all times thereafter under a mental disability to republish the
will by codicil or otherwise.
''(C) Such amendments shall not apply in the case of property
transferred in trust on or before October 9, 1969 -
''(i) if the decedent dies before October 9, 1972, without
having amended after October 9, 1969, the instrument governing
the disposition of the property,
''(ii) if the property transferred was an irrevocable interest
to, or for the use of, an organization described in section
2055(a), or
''(iii) if the instrument governing the disposition of the
property was not amended by the decedent before October 9, 1972,
and the decedent is on such date and at all times thereafter
under a mental disability to change the disposition of the
property.
''(D) The amendment made by paragraph (3) of subsection (d)
(amending section 2522 of this title) shall apply to gifts made
after December 31, 1969, except that the amendments made to section
2522(c)(2) of the Internal Revenue Code of 1986 shall apply to
gifts made after July 31, 1969.
''(E) The amendments made by paragraph (4) of subsection (d)
(amending sections 2055, 2106, and 2522 of this title) shall apply
to gifts and transfers made after December 31, 1969.
''(5) The amendment made by subsection (e) (enacting section 664
of this title) shall apply to transfers in trust made after July
31, 1969.
''(6) The amendments made by subsection (f) (amending section
1011 of this title) shall apply with respect to sales made after
December 19, 1969.''
Section 201(h)(2) of Pub. L. 91-172 provided that: ''The
amendment made by this subsection (amending this section) shall
apply to taxable years beginning after December 31, 1968.''
EFFECTIVE DATE OF 1966 AMENDMENT
Amendment by Pub. L. 89-570 applicable to taxable years ending
after Sept. 12, 1966, but only in respect of expenditures paid or
incurred after such date, see section 3 of Pub. L. 89-570, set out
as an Effective Date note under section 617 of this title.
EFFECTIVE DATE OF 1964 AMENDMENT
Section 209(f) of Pub. L. 88-272, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
''(1) The amendments made by subsections (a), (b), and (c)
(amending this section and sections 545 and 556 of this title),
shall apply with respect to contributions which are paid in taxable
years beginning after December 31, 1963.
''(2) The amendments made by subsection (d) (amending this
section and section 381 of this title) shall apply to taxable years
beginning after December 31, 1963, with respect to contributions
which are paid (or treated as paid under section 170(a)(2) of the
Internal Revenue Code of 1986 (formerly I.R.C. 1954)) in taxable
years beginning after December 31, 1961.
''(3) The amendments made by subsection (e) (amending this
section) shall apply to transfers of future interests made after
December 31, 1963, in taxable years ending after such date, except
that such amendments shall not apply to any transfer of a future
interest made before July 1, 1964, where -
''(A) the sole intervening interest or right is a
nontransferable life interest reserved by the donor, or
''(B) in the case of a joint gift by husband and wife, the sole
intervening interest or right is a nontransferable life interest
reserved by the donors which expires not later than the death of
whichever of such donors dies later.
For purposes of the exception contained in the preceding sentence,
a right to make a transfer of the reserved life interest to the
donee of the future interest shall not be treated as making a life
interest transferable.''
Amendment by section 231(b)(1) of Pub. L. 88-272 applicable to
dispositions after Dec. 31, 1963, in taxable years ending after
such date, see section 231(c) of Pub. L. 88-272, set out as an
Effective Date note under section 1250 of this title.
EFFECTIVE DATE OF 1962 AMENDMENTS
Section 2(c) of Pub. L. 87-858 provided that: ''The amendments
made by subsections (a) and (b) (amending this section) shall apply
to taxable years beginning after December 31, 1960.''
Amendment by Pub. L. 87-834 applicable to taxable years beginning
after Dec. 31, 1962, see section 13(g) of Pub. L. 87-834, set out
as an Effective Date note under section 1245 of this title.
EFFECTIVE DATE OF 1960 AMENDMENT
Amendment by Pub. L. 86-779 applicable with respect to taxable
years beginning after Dec. 31, 1959, see section 7(c) of Pub. L.
86-779, set out as a note under section 162 of this title.
EFFECTIVE DATE OF 1958 AMENDMENT
Section 10(b) of Pub. L. 85-866 provided that: ''The amendment
made by subsection (a) (amending this section) shall apply with
respect to taxable years beginning after December 31, 1957.''
Amendment by section 11 of Pub. L. 85-866 applicable to taxable
years beginning after Dec. 31, 1953, and ending after Aug. 16,
1954, see section 1(c)(1) of Pub. L. 85-866, set out as a note
under section 165 of this title.
Section 12(b) of Pub. L. 85-866 provided that: ''The amendment
made by subsection (a) (amending this section) shall apply to
taxable years ending after December 31, 1957, but only with respect
to charitable contributions made after such date.''
EFFECTIVE DATE OF 1956 AMENDMENT
Section 2 of act Aug. 7, 1956, provided that: ''The amendment
made by this Act (amending this section) shall apply only with
respect to taxable years beginning after December 31, 1955.''
SAVINGS PROVISION
For provisions that nothing in amendment by Pub. L. 101-508 be
construed to affect treatment of certain transactions occurring,
property acquired, or items of income, loss, deduction, or credit
taken into account prior to Nov. 5, 1990, for purposes of
determining liability for tax for periods ending after Nov. 5,
1990, see section 11821(b) of Pub. L. 101-508, set out as a note
under section 29 of this title.
Transfer of Functions.
TRANSFER OF FUNCTIONS
United States International Development Cooperation Agency (other
than Agency for International Development and Overseas Private
Investment Corporation) abolished and functions and authorities
transferred, see sections 6561 and 6562 of Title 22, Foreign
Relations and Intercourse.
Miscellaneous
ANTI-ABUSE RULES
PL 108-357, Sec. 882(e).--The <<NOTE: 26 USC 170 note.>> Secretary of
the Treasury may prescribe such regulations or other guidance as may be
necessary or appropriate to prevent the avoidance of the purposes of
section 170(e)(1)(B)(iii) of the Internal Revenue Code of 1986 (as added
by subsection (a)), including preventing--
(1) the circumvention of the reduction of the charitable
deduction by embedding or bundling the patent or similar
property as part of a charitable contribution of property that
includes the patent or similar property,
(2) the manipulation of the basis of the property to
increase the amount of the charitable deduction through the use
of related persons, pass-thru entities, or other intermediaries,
or through the use of any provision of law or regulation
(including the consolidated return regulations), and
(3) a donor from changing the form of the patent or similar
property to property of a form for which different deduction
rules would apply.
Effective Date.--The <<NOTE: 26 USC 170 note.>> amendments made
by this section shall apply to contributions made after June 3, 2004.
AUTHORITY TO WAIVE APPRAISAL REQUIREMENT FOR CERTAIN CHARITABLE
CONTRIBUTIONS OF PROPERTY
Section 6281 of Pub. L. 100-647 provided that: ''Notwithstanding
paragraph (2) of section 155(a) of the Tax Reform Act of 1984
(section 155(a)(2) of Pub. L. 98-369, set out below), the Secretary
of the Treasury or his delegate may in the regulations prescribed
pursuant to such section waive the requirement of a qualified
appraisal in the case of a qualified contribution (within the
meaning of section 170(e)(3)(A) of the 1986 Code) of property
described in section 1221(1) (probably means section 1221(1) of the
1986 Code) with a claimed value in excess of $5,000.''
PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989
For provisions directing that if any amendments made by subtitle
A or subtitle C of title XI (Sec. 1101-1147 and 1171-1177) or title
XVIII (Sec. 1800-1899A) of Pub. L. 99-514 require an amendment to
any plan, such plan amendment shall not be required to be made
before the first plan year beginning on or after Jan. 1, 1989, see
section 1140 of Pub. L. 99-514, as amended, set out as a note under
section 401 of this title.
TREATMENT OF CERTAIN AMOUNTS PAID TO OR FOR THE BENEFIT OF CERTAIN
INSTITUTIONS OF HIGHER EDUCATION
Section 1608 of Pub. L. 99-514, which related to treatment of
certain amounts paid to or for the benefit of certain institutions
of higher education, was repealed by Pub. L. 100-647, title I, Sec.
1016(b), Nov. 10, 1988, 102 Stat. 3575.
SUBSTANTIATION OF CHARITABLE CONTRIBUTIONS OF PROPERTY
Section 155(a) of Pub. L. 98-369, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
''(1) In general. - Not later than December 31, 1984, the
Secretary shall prescribe regulations under section 170(a)(1) of
the Internal Revenue Code of 1986 (formerly I.R.C. 1954), which
require any individual, closely held corporation, or personal
service corporation claiming a deduction under section 170 of such
Code for a contribution described in paragraph (2) -
''(A) to obtain a qualified appraisal for the property
contributed,
''(B) to attach an appraisal summary to the return on which
such deduction is first claimed for such contribution, and
''(C) to include on such return such additional information
(including the cost basis and acquisition date of the contributed
property) as the Secretary may prescribe in such regulations.
Such regulations shall require the taxpayer to retain any qualified
appraisal.
''(2) Contributions to which paragraph (1) applies. - For
purposes of paragraph (1), a contribution is described in this
paragraph -
''(A) if such contribution is of property (other than publicly
traded securities), and
''(B) if the claimed value of such property (plus the claimed
value of all similar items of property donated to 1 or more
donees) exceeds $5,000.
In the case of any property which is nonpublicly traded stock,
subparagraph (B) shall be applied by substituting '$10,000' for
'$5,000'.
''(3) Appraisal summary. - For purposes of this subsection, the
appraisal summary shall be in such form and include such
information as the Secretary prescribes by regulations. Such
summary shall be signed by the qualified appraiser preparing the
qualified appraisal and shall contain the TIN of such appraiser.
Such summary shall be acknowledged by the donee of the property
appraised in such manner as the Secretary prescribes in such
regulations.
''(4) Qualified appraisal. - The term 'qualified appraisal' means
an appraisal prepared by a qualified appraiser which includes -
''(A) a description of the property appraised,
''(B) the fair market value of such property on the date of
contribution and the specific basis for the valuation,
''(C) a statement that such appraisal was prepared for income
tax purposes,
''(D) the qualifications of the qualified appraiser,
''(E) the signature and TIN of such appaiser, (sic) and
''(F) such additional information as the Secretary prescribes
in such regulations.
''(5) Qualified appraiser. -
''(A) In general. - For purposes of this subsection, the term
'qualified appraiser' means an appraiser qualified to make
appraisals of the type of property donated, who is not -
''(i) the taxpayer,
''(ii) a party to the transaction in which the taxpayer
acquired the property,
''(iii) the donee,
''(iv) any person employed by any of the foregoing persons or
related to any of the foregoing persons under section 267(b) of
the Internal Revenue Code of 1986, or
''(v) to the extent provided in such regulations, any person
whose relationship to the taxpayer would cause a reasonable
person to question the independence of such appraiser.
''(B) Appraisal fees. - For purposes of this subsection, an
appraisal shall not be treated as a qualified appraisal if all or
part of the fee paid for such appraisal is based on a percentage
of the appraised value of the property. The preceding sentence
shall not apply to fees based on a sliding scale that are paid to
a generally recognized association regulating appraisers.
''(6) Other definitions. - For purposes of this subsection -
''(A) Closely held corporation. - The term 'closely held
corporation' means any corporation (other than an S corporation)
with respect to which the stock ownership requirement of
paragraph (2) of section 542(a) of such Code is met.
''(B) Personal service corporation. - The term 'personal
service corporation' means any corporation (other than an S
corporation) which is a service organization (within the meaning
of section 414(m)(3) of such Code).
''(C) Publicly traded securities. - The term 'publicly traded
securities' means securities for which (as of the date of the
contribution) market quotations are readily available on an
established securities market.
''(D) Nonpublicly traded stock. - The term 'nonpublicly traded
stock' means any stock of a corporation which is not a publicly
traded security.
''(E) The secretary. - The term 'Secretary' means the Secretary
of the Treasury or his delegate.''
CHARITABLE LEAD TRUSTS AND CHARITABLE REMAINDER TRUSTS IN CASE OF
INCOME AND GIFT TAXES
For includibility of provisions comparable to section 2055(e)(3)
of this title in this section, see section 514(b) of Pub. L.
95-600, set out as a note under section 2055 of this title.
DEDUCTION OF CONTRIBUTIONS TO CERTAIN ORGANIZATIONS FOR JUDICIAL
REFORM
Section 29 of Pub. L. 87-834, as amended by Pub. L. 99-514, Sec.
2, Oct. 22, 1986, 100 Stat. 2095, provided that: ''For purposes of
section 170 of the Internal Revenue Code of 1986 (formerly I.R.C.
1954) (relating to deduction for charitable, etc., contributions
and gifts), a contribution or gift made after December 31, 1961,
with respect to a referendum occurring during the calendar year
1962 to or for the use of any nonprofit organization created and
operated exclusively -
''(1) to consider proposals for the reorganization of the
judicial branch of the government of any State of the United
States or political subdivision of such State, and
''(2) to provide information, make recommendations, and seek
public support or opposition as to such proposals,
shall be treated as a charitable contribution if no part of the net
earnings of such organization inures to the benefit of any private
shareholder or individual. The provisions of the preceding
sentence shall not apply to any organization which participates in,
or intervenes in, any political campaign on behalf of any candidate
for public office.''
References
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 21, 41, 67, 74, 79, 108,
117, 119, 125, 151, 152, 162, 163, 381, 401, 410, 467, 501, 507,
508, 509, 512, 513, 514, 530, 535, 545, 556, 584, 642, 664, 674,
677, 702, 703, 773, 805, 873, 882, 1011, 1255, 1257, 1361, 1398,
1441, 2031, 2032A, 2055, 2056, 2057, 2503, 4041, 4221, 4253, 4911,
4940, 4941, 4942, 4944, 4945, 4947, 4948, 5214, 6033, 6050L, 6113,
6115, 6664, 7428, 7611, 7701, 7871 of this title; title 2 section
439a; title 11 section 548; title 12 section 3015; title 15
sections 80a-3, 80a-3a; title 16 sections 410yy-8, 1246, 1285;
title 20 sections 954, 956; title 22 sections 3307, 4341, 4603;
title 23 section 133; title 29 sections 1002, 1052; title 35
section 297; title 40 section 207c-2; title 42 sections 2996b,
10702.
