Charitable Contributions Overview

1
Charitable Contributions -- Overview

• Was there a gift to a qualifying donee?
• Was the gift of a qualifying property interest?
• What was the amount of the gift?
• How much of the gift is deductible, and in what
  year?
• 50 limitation, 30 limitations (2), 20
  limitation

2
Charitable Contributions
Gift?1
TO donee? 4
Entire interest in property? 6
Yes
Yes
Yes
To 17
No
No
No
of Property? 2
Yes
FOR BENEFIT OF donee? 5
Partial interest in property? 7
No
Qualifying donee? 3
Yes
No
Yes
Yes
No
To 12
To 8
Not deductible
3
Charitable Contributions
From 7partial Interests in property
Remainder interest home or farm?9
Undivided interest in entire property? 10
QCC? 11
Not de- ductible
No
No
No
Outright? 8
Yes
Yes
Yes
Yes
Potentially deductible To 17 for amount
No
In trust? 12
Yes
Yes
Yes
Yes
Yes
CLUT?16
CRAT?13
CLAT?15
CRUT?14
No
No
No
No
4
Amount of Gift Reduction 1
Yes
FMV of Property. 21
Cash? 17
Amount of cash 18
But check Reduction 2, go to 27
FMV minus amount that would be ordinary income if
sold. 25
No
Property? 19
Would any amount be ordinary income if sold?20
No
Yes
Yes
No
FMV minus ½ of amount that would be ordinary
income if sold.26
Computers to schools? 24
Qualified science property? 23
Qualified inventory? 22
No
No
Yes
Yes
Yes
5
Amount of Gift Reduction 2
FMV minus (1) reduction 1, if applicable.29
Qualifying appreciated stock?28
To non-qualifying PF?27
Yes
Yes
No
No
FMV minus (1) reduction 1, if applicable, and
(2) amount that would be capital gain if
sold.32
Use by donee related to exempt function? 31
Tangible personal property? 30
Yes
No
No
Yes
6
Apply Limitations

• Overall limitation 50 of contribution base
• Contribution base AGI less NOLs
• Public charity limitation 50 of CB
• Private charity limitation 30 of CB
• Capital gain property to public charities 30 of
  CB
• Capital gain property to private charities 20
  of CB

7
Apply the Limitations
100 of AGI
1. 50 charities capital gain property
other property 2. 30 charities
capital gain property other property
50 of AGI-overall limit
30 of AGI
20 of AGI
We pour charitable contributions into our
deduction glass but we cannot make it more than
half full (50 overall limit). Any excess is
carried over to be poured during the next 5
years.
8
Apply the Limitations
100 of AGI
1. 50 charities capital gain property
other property 2. 30 charities
capital gain property other property
50 of AGI-overall limit
30 of AGI
20 of AGI

• When we pour charitable contributions into our
  deduction glass , they come out of our
  charitable pitcher in a certain order
• Cash contributions to public charities and
  carryovers of same from other years
• Property contributions to public charities and
  carryovers of same
• Cash contributions to private foundations and
  carryovers of same
• Property contributions to private foundations
  and carryovers of same
• Contributions of capital gain property are
  subject to special limits, 30 for public
  charities and 20 for private charities.