H.R. 3768, Katrina Emergency Tax Relief Act of 2005

I just received the following email from a certified financial planner. It has some good information about new legislation that could impact your finances in 2005.

"This new legislation presents some unique, one-time giving opportunities for individuals.
In direct response to the Katrina hurricane disaster, Congress and the President have agreed to open for a short time a window of opportunity for charitable giving. Previously, individuals could deduct charitable donations up to 50 percent of their adjusted gross income. The Katrina bill removes this limitation on charitable gifts made between August 28, 2005, and December 31, 2005. The gift may benefit any charitable organization, whether or not the organization is engaged in Katrina relief. It may be used for any purpose you designate, but must be made in cash (gifts of property such as stocks and real estate do not qualify).
Most notable, for those age 59½ and above, the legislation effectively permits unlimited IRA withdrawals and gifts to charity. You may want to hold off on contributions of this nature until December, because other legislation through the CARE Act may allow you to roll over funds in your IRA, in lieu of cashing out your IRA, thereby avoiding an increase in taxable income.
For further guidance, we encourage you to contact your tax advisor."

Also, you can learn more about the Katrina Relief Act at the following website:
http://waysandmeans.house.gov/media/pdf/taxdocs/092105katrinasummary.pdf

All for now,
Lisa

P.S. small print here: no tax advice expressly given or implied.