Dave Camp (R-Mich.), Chair of the House Ways and Means Committee, has stated that he will not introduce a tax reform bill in 2013 or legislation to extend certain tax provisions that are scheduled to expire on December 31, 2013.  However, a retroactive extension may be enacted in 2014. These “tax extenders” had previously expired at the end of 2011, but legislation in early 2013 reinstated them for both 2012 and 2013. 

Expiring tax provisions of interest to exempt organizations include:

  • Qualified Conservation Contributions:  The increase of the deduction limitation from 30 percent of the donor’s contribution base to 50 percent of the donor’s contribution base.
  • IRA Rollovers to Charitable Organizations:  The ability of taxpayers age 70 ½ or older to donate up to $100,000 from Roth or traditional IRAs to certain charitable organizations without including the amount of their IRA withdrawals in gross income.   
  • Contributions of Food Inventory:  Enhanced deductions for contributions of apparently wholesome food from any trade or business of the taxpayer. 
  • Payments from Controlled Organizations:  Exemption from the unrelated business income tax provisions of rent, royalty, annuity, and interest income paid to a controlling organization from controlled organizations as long as the payments are not in excess of fair market value and are made pursuant to a binding contract that was in effect on August 17, 2006, or an extension of such contract.

Basis Adjustment to Stock of S Corporations:  For charitable contributions of property, reducing the basis of an S Corporation shareholder’s stock by the pro-rata share of the adjusted basis of the contributed property rather than the shareholder’s pro rata share of the contribution.

Basis Adjustment to Stock of S Corporations:  For charitable contributions of property, reducing the basis of an S Corporation shareholder’s stock by the pro-rata share of the adjusted basis of the contributed property rather than the shareholder’s pro rata share of the contribution.