Jimmy wants to donate millions to a charity, but he is concerned about paying gift taxes. What should he know about this type of donation?

Question

Quizplus · Accepted Answer

Donations to qualified charities can be transferred without incurring federal gift tax. As with the marital deduction, there is no limit to the size of the fit tax charitable deduction. The charitable organization incurs no income tax liability as a result of the gift and is not subject to income tax on the income derived from the property transferred. A transfer made during an individual's life will not only provide an income tax deduction but will also remove property from the taxpayer's estate. In contrast, a testamentary a bequest on a qualified organization will only remove property from the taxpayer's estate.

Jimmy Wants to Donate Millions to a Charity, but He