Flashcards in ITX - 43A Deck (29)
(43.1) Charitable contributions will reduce taxable income for clients whose total itemized deductions exceed the ___ deduction.
(43.1) Only gifts to ___ organizations are deductible. Donations to ___ are not.
(43.1) Examples of private charities
- veterans organizations
- fraternal orders
- private foundations
(43.1) Examples of public charities
- governmental entities
- Red Cross
- Salvation Army
- United Way
(43.2) If a taxpayer wants to donate funds to charitable causes but has not yet selected specific charities, the taxpayer can contribute funds to a ___ fund.
(43.2) The donor-advised fund provides the taxpayer with the up-front charitable deduction and the ability to ___.
spread out charitable gifts over a period of years
(43.2) The deduction for charitable gifts of cash to public charities is limited to ___% of the donor's AGI.
(43.2) For cash gifts to private charities, the limit is the lesser of ___% of AGI or the difference between ___% of AGI and donations to public charities.
(43.2) Travel for charitable purposes may be deducted by the donor based either on a rate of ___ cents per mile or on actual expenses for gas, oil, interest, and taxes on the car.
(43.2) Appreciated Property: The deduction for gifts of property is generally the ___ of the property on the date of donation. This rule applies to gifts of appreciated capital gain property (held more than one year) if it is ___.
(43.2) Appreciated Property: The deduction for gifts of TANGIBLE property is ___, if it is not used in the donee's charitable purpose, or ___, if it is used in the charitable purpose.
- the donor's basis
(43.2) Appreciated Property: Gifts of ordinary income property such as inventory, copyright work in the hands of the creator, and capital gain property held less than one year provide a deduction of only ___.
the donor's basis
(43.2) The deduction for gifts of property is limited to __% of AGI for gifts to public charities and __% of AGI for gifts to private charities. The limit can be extended to __% of AGI for gifts to public charities of appreciated capital gain property if the amount of the gift is reduced to only the donor's basis.
(43.3) Any charitable contribution that is disallowed because of the limitation with respect to AGI is carried forward for __ years and may be deducted on future returns.
(43.3) Partial-Interest Gifts to Charity: Generally, gifts to charity of less than an entire interest in property will not be ___. Exceptions include property held in a ___.
- charitable lead trust or charitable remainder trust, remainder interest in a residence or farm, and other property if that is the donor's entire interest.
(43.3) Nondeductible contributions: No deductions is allowed for a donor's contribution of __ to a qualified charity or for donations of the __ of property.
(43.3) Nondeductible contributions: No charitable deduction is allowed for a transfer to a charity of a ___ life insurance policy if the charity directly or indirectly pays the premiums on the policy covering the donor.
(43.4) When gifts of property are claimed as deductions in excess of $___ and are not publicly traded stock or cash, a donor must obtained a ___ for each item donated and must include a copy of the appraisal with his or her tax return.
- qualified appraisal
(43.4) Appraisals: If the donation is of nonpublicly traded securities, an appraisal is not needed until the donation exceeds $___.
(43.4) Substantiation Requirements: For gifts of cash under $__, a cancelled check will satisfy the substantiation requirements.
(43.4) Substantiation Requirements: For noncash contributions over $___, in addition to the written acknowledgement from the charity, Form ___ must be attached to the donor's return.
- Form 8283
(43.4) Substantiation Requirements: If a taxpayer donates a vehicle worth $___ or more, the charity must report the gross proceeds on the sale of the vehicle to the taxpayer
(43.4) When a charitable contribution is made that is directly related to the donor's business, and there is a reasonable expectation of a financial return on the amount given, the cost may be taken as a ___ deduction rather than as a ___ contribution. The contribution would not be subject to the __ limitation for C corporations and would not be a separately stated item for pass-through entities.
(43.5) Deductions and Calculations - Public Charities: Cash donations
up to 50% of the donor's AGI
(43.5) Deductions and Calculations - Public Charities: Long-term capital gain property (appreciated property)
up to 30% of the donor's AGI or 50% of AGI if valued at the donor's basis
(43.5) Deductions and Calculations - Public Charities: Property producing ordinary income when sold
up to 50% of the donor's AGI
use basis when calculating deductions
(43.5) Deductions and Calculations - Private Charities: Cash donations
up to 30% of the donor's AGI
(43.5) Deductions and Calculations - Private Charities: Long-term capital gain property (appreciated property)
up to 20% of the donor's AGI