RIA Checkpoint reports that on January 21, the Senate by voice vote approved H.R. 4462, a bill that would allow donors to accelerate the income tax benefits of charitable cash contributions for the relief of victims of the earthquake in Haiti. The bill had previously been passed by the House on January 20 by voice. The bill is now cleared for signature by the President, which is expected to occur this week.

When signed the bill will allow individuals who make charitable contributions to aid Haitian earthquake victims to elect to claim an itemized charitable deduction on their 2009 tax return (instead of having to wait until next year to claim the deductions on their 2010 tax return). The election would apply only to Haitian relief contributions made in cash after Jan. 11, 2010, and before Mar. 1, 2010. If the election is made, Haiti relief donations would be deductible on the 2009 return, not the 2010 return.

More than 10 million households have 'underwater mortgages,' in which the property is worth less than the outstanding balance on the mortgage. These homeowners cannot take advantage of lower rates or refinancing deals, and their homes are likely to go into foreclosure. An interesting discussion regarding foreclosures, Deeds in Lieu of Foreclosure and "short sales" was broadcast on NPR's "Talk of the Nation" radio program on January 14, 2009.

H.R. 4154, the Permanent Estate Tax Relief for Families, Farmers, and Small Business Act of 2009, has been added to the House floor calendar for consideration the week of Nov. 30. The bill would extend the estate tax provisions, due to expire at the end of this year under current law, and allow a $3.5 million estate tax exclusion and a reduction in the maximum estate and gift tax rate to 45% after 2009. Specifically, it would repeal the provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) that eliminate the tax on estates and generation-skipping transfers and the step-up in basis provisions for property acquired from a decedent for estates of decedents dying after 2009.