How will the IRS’s regs on donations for “consideration” affect you?

Description

Abstract: The IRS has issued its final regulations on the tax treatment of transfers made to charitable entities in return for “consideration.” Among other things, the rules tackle a recent tax strategy for avoiding the limit on state and local tax deductions imposed by the TCJA. This article discusses various parts of the regulations, including programs from state and local government that provide tax credits in return for certain donations. It also addresses the IRS’s clarification of the rule that limits deductions for quid pro quo contributions.