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    Near as I can tell, there is no formal guidance on this, but the literal text of section 530(d)(4)(B)(ii)
    https://www.law.cornell.edu/uscode/text/26/530#d_4
    makes an exception from the "additional tax" for distributions "attributable to the designated beneficiary's being disabled," which sounds rather different from simply taking a nonqual...
  • 1 Reply
    Hello, 
    We have a donor who is interested in using distributions from a 529 plan to make a gift to our organization. The donor's child has become disabled and will not be able to use the 529 for educational purposes. Our understanding is that there may be an exception to the 10% penalty if the child is disabled. Has anyone faced a similar situation or received...
  • 3 Replies
    I agree with Russ and his supporting documentation.  A Qualified Charitable Distribution  (QCD) from an IRA is only allowed to be made by the the IRA account owner who is actually over age 70 1/2.    The distribution from the IRA directly to charity is not allowed to be made in the year in which the owner will be turning age 70 1/2 even though the RMD to the owne...
  • 5 Replies
    Hi Cristina,

    I worked on an early termination relatively recently and we determine the donor's charitable deduction for having given up his income interest was his unrealized investment in the contract, which was significantly lower than the present value of his remaining annuity payments due to how long ago he had established the annuity.  The good n...
  • 5 Replies
    Sheila,

    You're right that there have been different schools of thought on calculating this deduction.  In fact, there is no authority that rules exactly what approach to take.  PG Calc has always been my go-to resource for these calculations, and they have always been on the short list of qualified appraisal options that I have sent to donors in these sit...
  • 5 Replies
    Friends,

    Concerning the amount of the deduction for the accelerated interest:  I looked into this some years ago, and I seem to recall that there were differing opinions on how to calculate the deduction.  I don't remember details, but I do recall concluding that the answer was probably that the donor could only deduct the remaining amount of any "invest...