Charitable Fund Tax Workaround Questioned by Tax Experts

Overview


Peter Faber questioned whether the IRS would approve state charitable funds created to avoid the new federal tax law’s limit on state and local tax deductions. “It is absurd to suggest that a ‘voluntary’ contribution” to such funds would be deductible, Mr. Faber asserted, citing “a well-established principle of tax law that a transaction’s form will not be respected if its substance is otherwise,” such as the case in this “charitable deduction gambit.”