Tsunami aid: accelerated charitable deduction.

• Position: Legislation

On Jan. 7, 2005, President Bush signed into law a bill permitting a charitable contribution made solely for tsunami relief, by Jan. 31, 2005, to be deducted on a 2004 return.

Specifically, taxpayers can claim a charitable deduction in tax year 2004 for donations they made through Jan. 31, 2005, for the relief of victims in areas affected by the Dec. 26, 2004 Indian Ocean tsunami, if the contribution was in cash and otherwise met Sec. 170's requirements.

While the act does not define "cash contribution," the term presumably includes a contribution made in cash, or by check, money order or credit card. However, only contributions fully earmarked for tsunami relief qualify for the...