[Anonymous]

Are charitable contributions limited to 50% or 30% of AGI? I always thought it was 50% but I am getting several MCQs wrong, saying it is 30%. Is it only 30% for Section 1231 property?

Also, is there any variation in limitation for corp or is it always 10% of AGI?

[Lindrobe]

For individuals, the charitable contributions limit is 50% of AGI, but only 30% of AGI if the property is appreciated property. For corps, the limit is 10% of income before DRD and charitable contribution deduction.

FAR 12/3/14, 87
AUD 2/3/14, 90
BEC 4/1/14, 88
REG 5/27/14, 94

Licensed CPA, Indiana

"Successful people do things that unsuccessful people don't want to do"

[Lindrobe]

For individuals, the charitable contributions limit is 50% of AGI, but only 30% of AGI if the property is appreciated property. For corps, the limit is 10% of income before DRD and charitable contribution deduction.

FAR 12/3/14, 87
AUD 2/3/14, 90
BEC 4/1/14, 88
REG 5/27/14, 94

Licensed CPA, Indiana

"Successful people do things that unsuccessful people don't want to do"

[Anonymous]

And the FMV, not the adjusted basis, of the appreciated property would be deductible? (subject to the 30% limit)

[Anonymous]

And the FMV, not the adjusted basis, of the appreciated property would be deductible? (subject to the 30% limit)

[Lindrobe]

Correct. Also, if the property has been held for less than a year, then I believe that only the lower of the cost or the FMV of the property at the time of the contribution can be deducted. Just saw that you are on your last section too. Good luck!

FAR 12/3/14, 87
AUD 2/3/14, 90
BEC 4/1/14, 88
REG 5/27/14, 94

Licensed CPA, Indiana

"Successful people do things that unsuccessful people don't want to do"

[Lindrobe]

Correct. Also, if the property has been held for less than a year, then I believe that only the lower of the cost or the FMV of the property at the time of the contribution can be deducted. Just saw that you are on your last section too. Good luck!

FAR 12/3/14, 87
AUD 2/3/14, 90
BEC 4/1/14, 88
REG 5/27/14, 94

Licensed CPA, Indiana

"Successful people do things that unsuccessful people don't want to do"

[Topsya]

@cscpa21 here is the rule:

If Property would result in STCG or ORDINARY GAIN if sold,the deduction is the lesser of BASIS or FMV

if Property would result in LTCG, Deduction = FMV

but, if Property use is unrelated to charitable activity, then use basis

limitations:

Overall Limitation = 50% AGI

Contribution of LTCG property – 30%AGI (such items like cloth for example)

AUD - 90
FAR - 83
BEC - 81
REG - 80
ETHICS - 100

[Topsya]

@cscpa21 here is the rule:

If Property would result in STCG or ORDINARY GAIN if sold,the deduction is the lesser of BASIS or FMV

if Property would result in LTCG, Deduction = FMV

but, if Property use is unrelated to charitable activity, then use basis

limitations:

Overall Limitation = 50% AGI

Contribution of LTCG property – 30%AGI (such items like cloth for example)

AUD - 90
FAR - 83
BEC - 81
REG - 80
ETHICS - 100

[Author]

Replies