Charitable Contributions Deduction: Treasury Regulations and Other IRS Guidance

Summary

This practice note provides a review of the proposed regulations (83 Fed. Reg. 43,563, published August 27, 2018), final regulations (TD 9864, published June 13, 2019) and other IRS guidance which provide guidance on the availability of charitable contribution deductions under I.R.C. Section 170 when a taxpayer received or expects to receive a corresponding state and local tax credit. 84 Fed. Reg. 27,513 (Aug. 12, 2019). These regulations are in response to certain states, such as Connecticut, New Jersey, and New York that established charitable contribution funds that would allow those taxpayers who itemize their deductions the opportunity to reduce the impact of the federal limitation on state and local tax implemented as part of the 2017 Tax Cuts and Jobs Act, P.L. 115-97 (the Act).