Qualified Charitable Gifts
Gifts to qualified exempt charities are deductible for gift tax, as well as income and estate tax purposes. Qualified charities include government organizations, charities that receive broad public support, religious organizations and other public entities. There also is an unlimited charitable gift tax deduction for transfers to private foundations. Reg. 25.2522(a).
Qualified Partial Interests
Several categories of exceptions to the partial interest gift rules qualify for charitable gift tax deductions. These include charitable remainder unitrusts, charitable remainder annuity trusts, pooled income funds, charitable lead trusts and remainder interests in a home or farm. Reg. 25.2522(c). The charitable remainder unitrust and annuity trust must qualify under Sec. 664. A pooled income fund must be qualified under Sec. 642(c)(5).
Undivided Interests
The partial interest may also be an undivided percentage of each and every right that the donor holds in property. Reg. 25.2522(c). For example, a donor may give an undivided 60% of a property to charity. However, she may not give the surface rights while retaining the mineral interests and still qualify for a charitable gift deduction. Sec. 170(f)(3).
Conservation Easements and Artwork
Specific exemptions exist for a conservation easement or a gift of artwork apart from the copyright to the artwork. The owner of land may give a conservation easement to an appropriate charitable organization and qualify for the charitable gift deduction. Sec. 2522(d). Similarly, a gift of art may be made apart from the copyright and still qualify. Sec. 2522(c)(3).
