[Anonymous]

Hi, When given a problem with both cash and property contribution, Do we test them separately or we test them both the same?

[Sherrid]

I'd help you but I need to understand the question – can you give me more info? Is this in reference to not for profits or schedule A?

[Anonymous]

it is for schedule A, for example, if your AGI is 9,000, and you contribute a property worth 5,000 and cash 2000. The question is

Do we test each separately: property: 30% of 9000= 2700 then

cash : 50% of 9000= 4500

total = 2700+ 2000= 4700

Or we test them together 50% of 9000

total allow: 4500 only

[Anonymous]

If just cash = 50% AGI

Appreciated property = max 30% AGI

Both (combine) max 50% AGI for individual

[Anonymous]

So in the example above: you can deduct $2000 for cash, and $2500 for the property. Or $2700 property, and $1800 cash. Remaining carried forward.

Sorry! I immediately thought you asked about individual situation because for corporations and non-profit corps, the rule is the same, right? 10%. It's been awhile for me, but I do remember the individual case 🙂

[Anonymous]

so is the answer is 4500 or 4700?

[Anonymous]

Max 50% of your AGI, so both cash and PP = $4500 max. You can either use up the cash, and the remaining 4500-2000 = 2500 applied to the PP. If you want to use the PP (you are allowed up to 30% of the AGI only), then the amount of cash allowed is 4500 – 2700 = 1800. The remaining of 2300 (PP) and $200 cash carried over to the next period. My point is: you are allowed only 50% AGI of max deduction (cash alone OR combination of cash and property), and property can be up only to 30% of AGI.

[Anonymous]

ic, got it, thanks

[Author]

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