Stanley C. Ruchelman was quoted in Bloomberg BNA's Daily Tax Report on state plans to create charitable funds as a workaround to the new federal tax law.
In the article, published on March 22, 2018, Mr. Ruchelman offered skepticism about the viability of proposals by New York, California, New Jersey, and other states to mitigate the impact of the new $10,000 limitation on the Federal deduction for state and local taxes.
Mr. Ruchelman noted that creation of the charitable funds simply to get around the ceiling on state tax deductions "tends to fall right into the definition of an abusive tax shelter." If the credits are deemed "a transaction of interest" by the I.R.S., the disclosure, record-keeping and tax penalty rules would apply to taxpayers, promoters, and material advisers.
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