Contribute Wisely
The IRS is targeting taxpayers who are not contributing wisely in order to inflate their charitable deduction. The transactions deal with transactions involving contributions of a successor member interest in a limited liability company.
The transactions involving contributions of a successor member interest are utilized by persons to claim charitable contributions that may be excessive. These transactions arise when a taxpayer acquires a successor member interest, directly or indirectly, in real property, transfers the interest to a tax-exempt organization, and claims a charitable contribution deduction that is significantly higher than the amount that the taxpayer paid for the interest. See IRS Notice 2007-73.
Be conservative on your charitable contributions, and don’t play games with transferring to other entities. We can help guide you.