Proposed REG-101258-08Proposed REG-101258-08
The Treasury Department issued proposed regulations on June 18, 2008 (REG-101258-08) to clarify the federal tax consequences of an ordering provision in a will, trust or provision of local law that attempts to determine the income tax character of the amounts paid to a charitable beneficiary. A trust or estate receives an unlimited income tax deduction under Internal Revenue Code Section 642(c) for
January 1, 2009
David A. Handler
The Treasury Department issued proposed regulations on June 18, 2008 (REG-101258-08) to clarify the federal tax consequences of an ordering provision in a will, trust or provision of local law that attempts to determine the income tax character of the amounts paid to a charitable beneficiary.
A trust or estate receives an unlimited income tax deduction under Internal Revenue Code Section 642(c) for contributions to charity made pursuant to the terms of the governing instrument. Treasury Regulations Sections 1.642(c)-3 and 1.643(a)-5 specify that the provisions in the governing instrument will control if they specifically provide as to the source out of which amounts are to be paid to a charitable beneficiary. Otherwise, th...
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