Grave Injustice Parity Act

Summary#

This bill changes parts of the federal tax code so certain nonprofit cemeteries can receive tax-deductible transfers. It adds a new category for deductions from estates and for gifts to: (1) a cemetery company owned and run only for its members, or (2) a corporation chartered only for burial purposes that is not allowed to do other business. Those cemeteries must not be run for profit and their net earnings cannot go to private shareholders or individuals. The bill also amends private foundation rules so distributions to those cemeteries are treated in the special ways described in sections 4942 and 4945 of the tax code. The estate and gift deduction changes apply to taxable years beginning after the law takes effect. The private foundation changes apply to distributions made after enactment.

What it means for you#

• Individuals who leave money or property to a qualifying cemetery in a will may be able to claim an estate tax deduction under section 2055.
• People who make deductible gifts to a qualifying cemetery may be able to claim a charitable gift deduction under section 2522 (rules for residents and nonresidents are both amended).
• Private foundations that give money to qualifying cemeteries will have those distributions treated under the foundation distribution rules described in sections 4942 and 4945.

Expenses#

No publicly available information on estimated budgetary effects, revenue changes, or costs is provided in the bill text or metadata.

Proponents' View#

No publicly available information on supporters' statements or arguments is included in the bill text or metadata.

Opponents' View#

No publicly available information on opponents' statements or arguments is included in the bill text or metadata.