Pease Limitation Explained: Video Analysis
Next year (2013), a little-known tax provision called the Pease limitation is scheduled to take effect if Congress does not act. Pease would limit the value of itemized deductions (including the charitable deduction) for upper-income brackets, which is a concern for the charitable community.
This provision recently came up as part of a Senate Democratic plan to extend current tax rates for those making under $250,000 for one year, but allow current tax policy to expire for those making over $250,000.
Evan Liddiard, CPA and tax expert with the Alliance for Charitable Reform, breaks down what Pease is and how it may impact charitable giving.
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