Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Charitable Donors Get Extra Months to Give in House Plan

Don't Miss Out —
Follow us on:

July 17 (Bloomberg) -- Taxpayers would receive more time to make deductible charitable contributions in a bill passed today by the U.S. House of Representatives.

The measure would allow taxpayers to take deductions starting with their 2014 tax returns for contributions they make through the following April 15, the date taxes are due. That change would align the deduction and the tax benefit, compared with current law that sets a Dec. 31 deadline for donations. That often comes before taxpayers know their final marginal tax rate and whether they will itemize deductions.

The measure is part of a bill that would cost the government $16.2 billion in foregone revenue over the next decade, was passed on a 277-130 vote. Also, it would revive and make permanent lapsed tax breaks for contributions of conservation easements and food inventory.

It also would make permanent an expired provision that lets people older than age 70 1/2 with individual retirement accounts to direct all or part of their distributions directly to charity. Those donations would count toward the required minimum distribution and be excluded from taxable income.

“It’s a fundamental question of fairness, and it’s a fundamental question of: Do we care about our fellow citizens in their time of need?” said Representative Tom Reed, a New York Republican.

The Obama administration opposes the bill and has threatened a presidential veto, meaning the measure is unlikely to become law.

Democrats said they supported many of the provisions in the bill. They objected to the measure in part because it adds to the projected budget deficit.

“It’s not paid for,” said Representative Mike Thompson of California, a Democrat who is a chief advocate for the conservation easement tax break. “We need to pass it. We need to do it right.”

The bill is H.R. 4719.

To contact the reporter on this story: Richard Rubin in Washington at rrubin12@bloomberg.net

To contact the editors responsible for this story: Jodi Schneider at jschneider50@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.