Notice; Guidance Providing a Safe Harbor Under Section 164 for Certain Individuals Who Make a Payment to or for the Use of and Entity Described in Section 170(c) in Return for a State or Local Tax Credit
IRS has issued final regulations that require taxpayers to reduce their charitable contribution deductions by the amount of any state or local tax credits they receive or expect to receive in return. IRS has also issued a safe harbor that allows individuals to, in certain circumstances, deduct disallowed charitable contributions as state or local taxes.
Checkpoint will provide additional information about the regs, etc. in a future Federal Tax Update.