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Changes in Charitable Deductions that might affect You

2 year (2012 & 2013) Extension of Tax-Free Distributions from Individual Retirement Accounts for Charitable Purposes
Taxpayers age 70 1/2 or older may make tax-free distributions to charities from their traditional individual retirement accounts (IRAs and Roth IRAs) of up to $100,000 per taxpayer, per taxable year 2012 and 2013.  The Extension permits individuals to make charitable distributions through the end of January 2013 as if they were made on December 31, 2012.  The same taxpayer may also make another similar distribution later in 2013 for tax year 2013. 

Phase-out of Itemized Deductions and Personal Exemptions returns to Tax Law in 2013
An amount of a taxpayer’s itemized deductions equal to 3 percent of adjusted gross income in excess of $100,000 (adjusted for inflation) will be disallowed, but not in excess of 80 percent of the taxpayer’s total itemized deductions. The disallowance rule applies to all of a taxpayer’s itemized deductions except for medical expenses, investment interest, and casualty and theft losses.

Please consult your tax advisor for more details on these and other provisions.

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