[mdrobbin]

Does it matter what order you take charitable contriubtions when arriving at 50% of AGI? Let’s say you have $100K in AGI which means you have a $50K cap for deductible contributions. There is $30K cash donated and $30K LTCG on property donated (no special election for basis on property).

Do I take $30K cash deduction and $20K LTCG property deduction (carrying forward $10K from the property that is left over) or do I take the property deduction first and then carry forward the remaining cash contribution not taken?

Thanks in advance if you can help!

FAR - 2012 - PASSED (YAEGER)
AUD - 2012 - PASSED (YAEGER + NINJA NOTES)
BEC - 2012 - PASSED (YAEGER + NINJA NOTES)
REG - 2013 - PASSED (YAEGER + NINJA NOTES + NINJA AUDIO)

ETHICS - 2013 - PASSED

DONE!!! Thank you A71 for all the support! Hiya!!!

[Sequin45]

According to IRS Rules:

How To Figure Your Deduction When Limits Apply

If your contributions are subject to more than one of the limits just discussed, you can deduct them as follows.

1.Contributions subject only to the 50% limit, up to 50% of your adjusted gross income.

2.Contributions subject to the 30% limit, up to the lesser of:

a.30% of adjusted gross income, or

b.50% of adjusted gross income minus your contributions to 50% limit organizations, including contributions of capital gain property subject to the special 30% limit.

3.Contributions of capital gain property subject to the special 30% limit, up to the lesser of:

a.30% of adjusted gross income, or

b.50% of adjusted gross income minus your other contributions to 50% limit organizations.

4.Contributions subject to the 20% limit, up to the lesser of:

a.20% of adjusted gross income,

b.30% of adjusted gross income minus your contributions subject to the 30% limit,

c.30% of adjusted gross income minus your contributions of capital gain property subject to the special 30% limit, or

d.50% of adjusted gross income minus the total of your contributions to 50% limit organizations and your contributions subject to the 30% limit.

5.Qualified conservation contributions (QCCs) subject to the special 50% limit, up to 50% of adjusted gross income minus any contributions in (1) through (4).

6.QCCs subject to the 100% limit for farmers and ranchers, up to 100% of adjusted gross income minus any contributions in (1) through (5).

If more than one of the limits just described limit your deduction for charitable contributions, you may want to use Worksheet 2, later, to figure your deduction and your carryover.

https://www.irs.gov/publications/p526/ar02.html#en_US_2011_publink1000229817

AUD - 69, 78
BEC - 80
REG - 89
FAR - 80

[mdrobbin]

Thanks, Sequin45!!!

FAR - 2012 - PASSED (YAEGER)
AUD - 2012 - PASSED (YAEGER + NINJA NOTES)
BEC - 2012 - PASSED (YAEGER + NINJA NOTES)
REG - 2013 - PASSED (YAEGER + NINJA NOTES + NINJA AUDIO)

ETHICS - 2013 - PASSED

DONE!!! Thank you A71 for all the support! Hiya!!!

[Author]

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