St. Cecilia Capital Building Campaign

• made from a traditional or Roth IRA (or a beneficiary trational or Roth IRA)

• made on or after the date on which the account holder (or beneficiary account holder) turns 70 1/2

• paid directly by the IRA trustee or Custodian to a Code Sec. 170(b)(1)(A) charitable organization (Code Sec. 509(a)(3) private foundations and Code Sec. 4966(d)(2) donor advised funds are not eligible).

• paid dircetly to the charity in 2008 or 2009

Individuals can select a QCD in cash or securities. Currently, only 2008 QCDs can be requested. A 2009 QCD cannot be requested until 2009.

From the IRS website: (http://www.irs.gov/publications/p590/ch01.html)

Qualified charitable distributions.   A qualified charitable distribution (QCD) is a nontaxable distribution made directly by the trustee of your IRA (other than a SEP or SIMPLE IRA) to an organization eligible to receive tax-deductible contributions. You must have been at least age 70½ when the distribution was made. Also, you must have the same type of acknowledgement of your contribution that you would need to claim a deduction for a charitable contribution. See Records To Keep in Publication 526, Charitable Contributions. Your total QCDs for the year cannot be more than $100,000. If you file a joint return, your spouse can also have a QCD of up to $100,000. However, the amount of the QCD is limited to the amount of the distribution that would otherwise be included in income. If your IRA includes nondeductible contributions, the distribution is first considered to be paid out of otherwise taxable income.

A qualified charitable distribution will count towards your minimum required distribution.

Example.   On November 1, 2007, Jeff, age 75, directed the trustee of his IRA to make a distribution of $25,000 directly to a qualified 501(c)(3) organization (a charitable organization eligible to receive tax-deductible contributions). The total value of Jeff's IRA is $30,000 and consists of $20,000 of deductible contributions and earnings and $10,000 of nondeductible contributions (basis). Since Jeff is at least age 70½ and the distribution is made directly by the trustee to a qualified organization, the part of the distribution that would otherwise be includible in Jeff's income ($20,000) is a qualified charitable distribution (QCD). In this case, Jeff has made a QCD of $20,000 (his deductible contributions and earnings). Because Jeff made a distribution of nondeductible contributions from his IRA, he must file Form 8606, Nondeductible IRAs, with his return. Jeff includes the total distribution ($25,000) on line 15a of Form 1040. He completes Form 8606 to determine the amount to enter on line 15b of Form 1040 and the remaining basis in his IRA. Jeff enters -0- on line 15b. He also enters “QCD” next to line 15b to indicate a qualified charitable distribution. After the distribution, his basis in his IRA is $5,000. If Jeff itemizes his deductions and files Schedule A with Form 1040, the $5,000 portion of the distribution attributable to the nondeductible contributions can be deducted as a charitable contribution, subject to AGI limits. He cannot take a charitable contribution deduction for the $20,000 portion of the distribution that was not included in his income.

  

You cannot claim a charitable contribution deduction for any QCD not included in your income.