Charitable Gift Financing Blueprint is a strategy that enables charitably inclined high-income earners (AGI $500K+) to use a third-party loan to make a tax-deductible contribution to charitable organizations. The IRS has ruled that when debt to a third party is used to make a charitable contribution, the taxpayer is entitled to a charitable contribution deduction under IRC 170(a) in the year the gift was made, and the deduction may not be postponed until the taxpayer pays the indebtedness - Rev. Rul. 78-38, 1978-1 C.B. 67, Granan v. Comm. 55 T.C. 753 (1971).
Learning Objectives
- Identify how to use a third-party loan to make a tax-deductible contribution to charitable organizations
Major Topics
- Charitable Gift
- Tax Deduction
- Create Public Benefits
