The Tax Law of Charitable Giving. Bruce R. Hopkins

Three.

      583 583 See § 8.5.

      584 584 See Part Five.

      585 585 See § 2.7.

      586 586 One entity that is not entitled to a charitable contribution deduction under any circumstance is a partnership. IRC § 703(a)(2)(C). Instead, when a gift is made from a partnership, each partner takes into account his, her, or its distributive share of the deduction. IRC § 702(a)(4); Reg. §§ 1.702-1(a)(4), 1.703-1(a)(2)(iv). In general, see § 4.18.

      587 587 See § 2.3.

      588 588 Rev. Proc. 2018-32, 2018-23 I.R.B. 739 § 2.01.

      589 589 See § 2.4(a).

      590 590 Rev. Proc. 2018-32, 2018-23 I.R.B. 739 § 2.03.

      591 591 See Tax-Exempt Organizations § 28.5.

      592 592 Id. § 28.4.

      593 593 Rev. Proc. 2018-32, 2018-23 I.R.B. 739 § 3.01.

      594 594 Id.

      595 595 Id. § 3.04.

      596 596 Id. § 4.01.

      597 597 IRC § 6033(j). See Tax-Exempt Organizations § 28.5.

      598 598 Rev. Proc. 2018-32, 2018-23 I.R.B. 739 § 4.02.

      599 599 Id. § 4.03.

      600 600 Id. § 4.04.

      601 601 Id. § 4.05.

      602 602 Id. § 4.06.

      603 603 Id. § 5.01.

      604 604 Id. § 7.01(1)-(3).

      605 605 IRC § 4946(a)(1)(C)-(G).

      606 606 Rev. Proc. 2018-32, 2018-23 I.R.B. 739 § 7.01(4), (5).

      607 607 Id. § 7.02.

      608 608 IRC § 7428. See Tax-Exempt Organizations § 27.5(b). An action pursuant to these procedures may not, however, be brought with respect to a revocation of status caused by application of IRC § 6033 (j) (see text accompanied by supra note 597 (IRC § 7428(b)(4)).

      609 609 IRC § 7428(c).

      610 610 Rev. Proc. 2011-33, 2011-25 I.R.B. 887 § 5.02.

      611 611 IRC §§ 671–679.

      612 612 This principle includes the charitable contribution deduction. Reg. § 1.671-2(c). For example, a charitable contribution made by a trust that is attributed to the grantor (an individual) is aggregated with the grantor's other charitable contributions to determine their deductibility under the percentage limitations (see ch. 7). Reg. § 1.671-2(c).

      613 613 IRC § 671.

      614 614 Reg. § 1.671-2(e).

      615 615 Generally, the grantor of a trust is the person who contributes the principal to the trust (Bixby v. Commissioner, 58 T.C. 757 (1972); Rev. Rul. 87-127, 1987-2 C.B. 156; Priv. Ltr. Rul. 9338015). The IRS published final and temporary regulations providing guidance as to the qualification of persons as grantors of trusts (T.D. 8890).

      616 616 Reg. § 1.671-1(a).

      617 617 IRC § 673.

      618 618 IRC § 674(a).

      619 619 IRC § 674(b)(4).

      620 620 Reg. § 1.674(a)-1(b)(1)(iii). The IRS ruled that an arrangement by which the “presumptive remaindermen” of three charitable lead trusts would serve as “charitable appointers” (those who designate the income beneficiary charities) following the death of the trusts' grantor would not cause the trusts to be treated as owned by the grantor (Priv. Ltr. Rul. 200029033).

      621 621 IRC § 675.

      622 622 A nonadverse party is a person who is not an adverse party. IRC § 672(b). An adverse party is a person having a substantial beneficial interest in a trust that would be adversely affected by the exercise or nonexercise of the power that they possess with respect to the trust. IRC § 672(a); Reg. § 1.672(a)-1(a). A person having a general power of appointment over trust property is deemed to have a beneficial interest in the trust. IRC § 672(a); Reg. § 1.672(a)-1(a).

      623 623 IRC § 676.

      624 624 IRC § 677. The IRS examined a proposed trust agreement and concluded that the grantor would not be treated as the owner of the trust, although the agency observed that actual operation of the trust could lead to a different conclusion (Priv. Ltr. Rul. 199927010, corrected by Priv. Ltr. Rul. 200003059). The IRS reviewed the operations of an ostensible charitable remainder trust (see ch. 10) and, finding various inappropriate payments out of trust income, concluded that the trust cannot qualify as a charitable remainder trust but rather is a grantor trust, with the trustee being owner of the trust (Chief Couns. Adv. Mem. 200628026).

      625 625 IRC