Sec. 1403. Charitable contributions

1,073 words·~5 min read·/bill/113/hr/1/ih/section-1403

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Paragraph

(3)of section 170(b) is amended to read as follows: The amount of charitable contributions taken into account under this section as made by any individual during a taxable year (determined without regard to subsection (d)) shall be reduced by 2 percent of the taxpayer’s contribution base for such taxable year. Such reduction shall apply— first, to charitable contributions to which paragraph (1)(B) applies to the extent thereof, second, to charitable contributions to which paragraph (1)(C) applies to the extent thereof, and third, to charitable contributions to which paragraph (1)(A) applies to the extent thereof. . Subsection

(a)of section 170 is amended by redesignating paragraphs

(2)and

(3)as paragraphs

(3)and (4), respectively, and by inserting after paragraph

(1)the following new paragraph: If any charitable contribution is made by an individual after the close of a taxable year but not later than the due date (determined without regard to extensions) for the return of tax for such taxable year, then the taxpayer may elect to treat such charitable contribution as made in such taxable year. Such election may be made only at the time of the filing of such return of tax and shall be signified in such manner as the Secretary may provide. . Subsection

(e)of section 170 is amended— by striking paragraphs

(1)and (6), by redesignating paragraphs (2), (3), (4), and

(5)as paragraphs (3), (4), (5), and (6), respectively, and by inserting before paragraph

(3)(as so redesignated) the following new paragraphs: Except in the case of property to which paragraph

(2)applies, the amount of any charitable contribution of property otherwise taken into account under this section shall be reduced by the amount of gain which would have been realized if the property contributed had been sold by the taxpayer for its fair market value (determined at the time of such contribution). In the case of property to which this paragraph applies, the amount of any charitable contribution of property otherwise taken into account under this section shall be reduced by the amount of gain which would not 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). This paragraph shall apply to— any contribution of tangible personal property if the use of such property by the donee is related 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)), any qualified conservation contribution (as defined in subsection (h)(1)), any qualified contribution (as defined in paragraph (4)(A)), any qualified research contribution (as defined in paragraph (5)(B)), and any qualified appreciated stock (as defined in subsection (e)(6)). For purposes of applying this paragraph (other than in the case of gain to which section 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. . Paragraph

(4)of section 170(e), as redesignated by paragraph (1), is amended by striking subparagraphs

(C)and

(D)and by redesignating subparagraph

(E)as subparagraph (C). Section 170(e)(3), as redesignated by paragraph (1), is amended by striking paragraph

(1)and inserting paragraphs

(1)and

(2). Paragraphs

(4)and

(5)of section 170(e), as redesignated by paragraph (1), are each amended by striking paragraph (1)(A) each place it appears and inserting paragraph (2)(A) . Section 170(e)(6), as redesignated by paragraph (1), is amended— by striking all that precedes for purposes of this paragraph in subparagraph

(B)and inserting the following: Except as provided in subparagraph (B), , by redesignating subparagraph

(C)as subparagraph (B), and by striking in a contribution to which paragraph (1)(B)(ii) applies (determined without regard to this paragraph) in subparagraph

(B)as so redesignated. Section 170(b)(1) is amended— by striking 30 percent in subparagraph (B)(i) and inserting 25 percent , and by striking 50 percent and inserting 40 percent in— the flush matter at the end of subparagraph (A), subparagraph (B)(ii), and clauses (i), (iv)(I), and

(v)of subparagraph

(C)(as redesignated by paragraph (2)). Paragraph

(1)of section 170(b) is amended by striking subparagraphs

(C)and

(D)and by redesignating subparagraphs (E), (F), and

(G)as subparagraphs (C), (D), and (E), respectively. Section 170(b)(1)(A)(vii) is amended by striking subparagraph

(F)and inserting subparagraph

(D)Section 170(b)(1)(B)(ii) is amended by striking (determined without regard to subparagraph (C)) . Section 170(b)(1)(C)(iii), as redesignated by paragraph (1), is amended by striking subparagraph (A), (B),

(C)or

(D)and inserting subparagraph

(A)or

(B). Section 170(b)(2)(B)(i)(I) is amended by striking paragraph (1)(E)(v) and inserting paragraph (1)(C)(v) . Section 545(b)(2) is amended by striking (D), and

(E)and inserting and

(C). Subparagraph

(C)of section 170(b)(1), as redesignated by subsection (d), is amended by striking clause (vi). Subparagraph

(B)of section 170(b)(2) is amended by striking clause (iii). Subsection

(h)of section 170 is amended by adding at the end the following new paragraph: An interest in real property shall not be treated as a qualified real property interest for purposes of this subsection if (at the time of the contribution of such interest) such property is, or is reasonably expected to be, used as a golf course. . Section 170(b)(1)(C)(iv)(II), as redesignated by subsection (d), is amended by striking made after the date of the enactment of this subparagraph . Section 170(b)(2)(B)(i)(II) is amended by striking , in the case of contributions made after the date of the enactment of this subparagraph, . Section 170 is amended by striking subsection (l). Section 170 is amended by striking subsection (m). Section 6050L is amended— by striking subsection

(b)and redesignating subsection

(c)as subsection (b), and by striking or

(b)in subsection

(b)(as redesignated by subparagraph (A)). Except as otherwise provided in this subsection, the amendments made by this section shall apply to contributions made in taxable years beginning after December 31, 2014. The amendments made by subsection

(e)shall apply to contributions made in taxable years beginning after December 31, 2013.