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No double-dipping on charitable transfer

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in Small Business Tax

Q  You stated that you can make a charitable contribution directly from an IRA after age 70 1/2. Can you simultaneously claim a charitable deduction? P.M., Washington, D.C.

A No. Unfortunately, you don’t qualify for a deduction on Schedule A when you take advantage of this provision in the Pension Protection Act of 2006 (PPA). But there’s no tax due on qualified charitable distributions up to $100,000. Significantly, the charitable distribution counts as required minimum distribution (RMD) from your IRA. This can reduce or completely eliminate the tax on RMDs.

The PPA provision officially expired after 2007, but it is expected to be renewed.

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