Cut out gifts of fractional interest — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
The pension reform law passed in August restricts deductions for donations of tangible property such as artwork. It effectively requires you to recapture the tax benefits if you fail to give away the entire interest within 10 years or if the charity never takes possession during that time. Plus, you’ll owe interest and a penalty. The new law change affects donations made after Aug. 17, 2006.