New law allows tax-free transfers from Individual Retirement Accounts

James Leon Combs, a retired businessman and owner of Beaver Creek Elk and Cattle Ranch in Taney County, and his wife, Dot, made the contribution and will give another $100,000 gift to a charity next year.

The Combs are some of the first in the region to donate under the Charitable Giving Act recently signed into law by President Bush. The bill allows people at least 70-and-a-half years old to move assets from IRAs to qualified charities without paying taxes on the withdrawn money.

Before the new legislation, IRA owners would pay as much as 40 percent of their donations in federal and state taxes.

“Skaggs Community Health Center will get full use of the gift,” Leon Combs said in a news release.

“I would prefer the charity received the entire amount, rather than having part of it diverted to Washington.”

The Charitable Giving Act bill is applicable for 2006 and 2007. The act also exempts blood banks from certain excise taxes and provides tax deductions for restaurants and other businesses that make food donations to food banks and pantries.

Skaggs Foundation is the charitable arm of Skaggs Community Health Center, which has 177 beds and 21 satellite medical clinics in Stone and Taney counties.

This story originally appeared in SBJ’s Oct. 24 free e-news Daily Update. Click here to register.