Charitable contributions of Qualified Replacement Property are tax deductible under the Code and are not taxable dispositions under the ESOP rollover rules. Qualified Replacement Property may also be contributed to a charitable remainder trust or annuity, which allows the donor to receive continuing income on a tax-advantaged basis, and removes the property from the donor’s estate for estate tax purposes. Charitable giving techniques can maximize the tax and financial benefits of an ESOP rollover.
Can I make a tax-deductible charitable contribution of Qualified Replacement Property?