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IRS Issues Inflation Adjustments for 2013

By Bruce R. Hopkins, EditorNovember 16, 2012 | Print

The IRS issued inflation adjustment amounts accompanying various tax laws for 2013 (Rev. Proc. 2012-41). Here are the relevant items:

  • The exception from unrelated business income taxation involving low-cost articles is applicable with respect to articles with a cost of no more than $10.20. [24.7(j)]
  • The $5, $25, and $50 guidelines for disregarding the value of insubstantial benefits received from a donor in return for a fully deductible income tax charitable contribution are $10.20, $51, and $102. [Appendices E–G]
  • The annual per-person, -family, or -entity dues limitation to qualify for the reporting exception regarding certain exempt organizations with nondeductible lobbying expenditures is $108 or less. [22.6(a)]
  • The limitation regarding the exemption of annual dues required to be paid by a member to an exempt agricultural or horticultural organization is $155. [24.7(l)]
  • The annual exclusion for gifts is now $14,000. [8.2(h)]

Subsequent guidance is to be provided as to the tax rate tables, the Hope Scholarship and Lifetime Earning Credits, the standard deduction, the overall limitation on itemized deductions, the personal exemption, the unified credit against estate tax for decedents’ estates, and many other items.

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