Charitable Contributions and Deductions

Question 1

Public Charities

Answer 1

All- churches, schools and hospitals
All - religious, educational, literary and prevention charities (Red Cross, Humane Society, United Way)

50%

Question 2

Private Charities

Answer 2

Private Non operating Foundations
Fraternal Orders,
War Veterans Groups

30%

Question 3

Deductions

Answer 3

Can’t deduct more than 50% AGI
Excess is carried forward for 5 years or death (sooner)

1. Calculate max can be given (50% AGI)
2. Deduct 50% contributions
3. Deduct 30% contributions

Always use public then private charities (excess carried forward.

Question 4

Appreciated Property

Answer 4

LTCG property
30% of AGI - if using FMV
50% of AGI - if using Basis

This applies to securities
Rarely an advantage to use basis

Question 5

Ordinary Income Property

Answer 5

Normally- if sold would produce ordinary income

Deduction is limited to BASIS

Inventory
copyright
Use-unrelated (antiques, art, item can't directly mbe used by charity...use basis)
work of art created by taxpayer
Short term gain property

Question 6

Loss Property

Answer 6

limited to current FMV

Question 7

Non Deductable Contributions

Answer 7

You must itemize to take a charitable deduction

Take greater of itemized or standard deductions

Question 8

Substantiating Requirements

Answer 8

No deduction allowed of $250 more without written acknowledgement

Question 9

Vehicle

Answer 9

Exceeds $500 need contemporaneous written acknowledgement

Max deduction allowed is gross proceeds received by charitable organization.

Question 10

Contributions by business entity

Answer 10

10% taxable income

does not include sole proprietors…only corporations