Standard Deduction and Itemized Deductions - Itemized Deductions - Charitable Contributions

4 important questions on Standard Deduction and Itemized Deductions - Itemized Deductions - Charitable Contributions

What is the deduction amount for charitable contributions of ordinary income property?

The amount of the deduction for ordinary income property is the lesser of the property's adjusted basis or its fair market value at the time it is contributed.

What is the deduction amount for long-term capital gain property?

The amount of the deduction for LTCG property is its fair-market-value at the time of the contribution.

What are the limits for contributions to public charities?

  • Cash: 60% of AGI.
  • Ordinary income property: 50% of AGI
  • Long-term capital gain property: 30% of AGI
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How do calculate apply limits among mixed types of contributions?

  • When applying the 50% limit, subtract any contributions subject to the 60% limit already considered
  • When applying the 30% limit, the limit is calculated as the lesser of
    • 1) 30% of AGI
    • 2) 50% of AGI minus any 60% and 50% limit property already considered.

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