H.R. 7087: Grave Injustice Parity Act

This bill, titled the Grave Injustice Parity Act, aims to amend the Internal Revenue Code to allow for certain tax deductions related to cemeteries. Here’s what it proposes in detail:

Deductions for Transfers from Estates or Gifts to Cemeteries

The bill introduces amendments to two sections of the Internal Revenue Code regarding tax deductions:

• Estates: It allows deductions for transfers made from estates to cemetery companies or corporations that are non-profit and dedicated solely to burial purposes. This includes companies owned and operated for the benefit of their members.
• Gifts: It extends the same deduction privileges to gifts given to these specified cemetery companies or corporations, again emphasizing that they must be non-profit and operate exclusively for burial-related activities.

This section of the bill will take effect in the taxable years following the enactment of the Act.

Distributions of Private Foundations to Cemeteries

The bill also addresses tax implications for private foundations in their distributions to cemeteries:

• Taxes on Failure to Distribute Income: The bill amends the rules surrounding tax penalties for private foundations that do not distribute a certain portion of their income, allowing them to direct distributions to eligible cemetery companies.
• Taxes on Taxable Expenditures: It modifies the definition of taxable expenditures to include distributions made to the same eligible cemetery companies, thus potentially exempting these from certain penalties.

Like the previous section, these amendments will apply to distributions made after the bill is enacted.

Summary of Impact

The key impact areas of this bill center around enabling tax deductions related to cemetery funding and allowing private foundations to contribute to cemeteries without facing specific penalties. Overall, it aims to support cemetery organizations that operate on a non-profit basis.

Relevant Companies

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