Submitted By: Fred
Answered: September 16, 2016 1:22 pm

What documentation do I need to establish a qualified charitable distribution (QCD)?

If you are at least 70-1/2 years old by the end of the year, you can make a direct transfer to a public charity up to $100,000. The portion transferred is not taxable, and it counts toward your required minimum distribution. The IRS doesn’t ask that you have personal documentation. Form 1099-R indicates whether your IRA distribution is a QCD. However, the financial institution where you maintain your IRA may ask for your personal letter instructing it to make a direct transfer; you supply the name of the charity. Some financial institutions let you give instructions over the phone or online.

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Tax Glossary

Appreciation in value

Increase in value of property due to market conditions. When you sell appreciated property, you pay tax on the appreciation since the date of purchase. When you donate appreciated property held long term, you may generally deduct the appreciated value.

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