Congress Extends Charitable IRA Rollover Transfers for 2014
There is good news for those who are still looking for a cost effective way to give to charities and get a tax break at the same time using their IRA accounts. Congress has just extended the Charitable IRA Rollover for 2014. The law is retroactive to January 1, 2014. First enacted in 2006, the law allows for those who meet certain criteria to give to the charities that matter most to them and avoid tax liabilities before the holiday season ends.

Qualifications

Only those who are 70 ½ years old can reap the benefits from the IRA Rollover Transfer law. If qualified, you can only donate up to $100,000. The donation must be made directly from the IRA account to the qualified charity. The charity also can’t be a philanthropic fund, supporting foundation, split interest trust, or a charitable gift annuity. The charity must not be a donor advised fund, supporting organization, or a private foundation. The donor also can’t receive any kind of benefit in return for the charitable gift.

The Benefits

Despite the restrictions, there are many benefits to taking part in the program before the end of year deadline. First, the program gives donors the opportunity to give to charities that are important to them without having to report the withdrawal of the gift as taxable income. Typically, a withdrawal of this amount would need to be reported as taxable income and then the donor could then claim a charitable giving tax deduction. This method helps avoid the tax liability; however the donor can’t take advantage of the tax deduction either. Freedom from the income tax burden can outweigh the potential benefit of a tax deduction for charitable giving. Secondly, this form of giving also lowers the reportable income for a couple or individual. This could keep a donor from exceeding an income limit that could result in higher Medicare premiums and other tax burdens overall.

Retro action Provisions

The transfer of IRA funds to a qualified charity of choice can be done relatively quickly, actually in the same day as the request is made for many institutions. With the retro action provisions of the law, those who already gave can take advantage of the benefits as they prepare for tax season also. Anyone thinking of taking advantage of the Charitable IRA Rollover of 2014 may want to contact his or her legal professionals and financial professionals to learn more about the benefits of donating from an IRA account so he or she can take advantage of the tax breaks before the end of the year.

By Anna Shapiro.

How to Patent Your Invention

Creating a new invention can be an exciting and invigorating time. Once you have created an invention you believe the world needs to see and use, the legal process of patenting your invention should be the next step. Before you file for a regular or provisional patent application, your idea is fair game for anyone else who wants to profit from it. If someone else takes your invention or ideas and patents them before you do, you virtually have no rights to the product or invention and will never see any fruits of your labor. It is vital to file for a patent as soon as you create your invention.

Filing for a Patent

The first step when preparing to file for a patent is to have a clearly outlined idea. Most people refer to this as an inventor’s notebook. It may contain diagrams, sketches, and write-ups about the invention. Every step of the process should be clearly outlined and documented. Then, it is necessary to prove the invention is new and that it works. This is usually in the form of a prototype. Most inventors then research the market to establish if there is a need.

A patent search is a necessary step. This can be done through the U.S. Patent and Trademark Office website. This step will definitively pinpoint other inventions that may be similar to yours. After a thorough patent search and market search reveals that your invention is unique and that there is a need, the next step is to officially file either a regular patent application or provisional patent application.  A provisional patent application gives you the right to claim patent pending status for your invention. This remains in effect for one year. Within that year, you must file a regular patent application. An application can be overwhelming for some. Having a skilled patent law attorney to help with the application process can make it less intimidating. The application typically contains a summary and detailed description of the invention. It also contains a background of the invention and a conclusion that essentially describes the need for the invention.

Next Steps

Once an application is complete and filed with the U.S. Patent Office, the patent office will respond. The Patent Examiner assigned to your patent application will review it, comment on it, and will likely need to be convinced about the invention’s originality and usefulness. The dialog with the examiner may take some time, depending on the complexity and technological field of the invention. It may also be a good idea to speak with an experienced patent lawyer to help patent your invention.

While the process may seem time-consuming and complicated, filing for a patent is the most important step in the journey of bringing an invention to life and to the masses. The creative process, hard work, and determination it takes to invent an entirely new functional object or design can be rewarding in itself. The protection of that invention through a patent filing is in your best interest and legal assistance can make it a smooth and successful step in the process.

By Anna Shapiro.