6/1/18: IRS Looking at State Tax-Credited Charity Contributions
In our May 23rd newsletter article, we discussed the benefit of the Louisiana state tax credit for contributions to School Tuition Organizations (STOs) and the potential benefit of the associated charitable deduction. Since that article was sent, the IRS has announced that it intends to issue regulations regarding workarounds that some states have proposed to help taxpayers avoid the new $10,000 cap on state and local tax deductions. Some of these workarounds use charitable funds that provide donors with state tax credits. Potential STO donors may want to wait until the IRS releases these guidelines if they are making the decision to donate based on IRS treatment of the donation as a charitable contribution.
If you have a question about your tax situation, please contact one of our Faulk & Winkler tax professionals at (225) 927-6811.