4 Charitable

Question 1

Public Charities include…

Answer 1

Churches, hospitsals, qual. medical research orgs affil. with hospitals, schools/colleges/universities

Question 2

Limits for different types of Charitable Giving

Answer 2

Election for LTCG:
FMV = 3 letters = 30% of AGI
Basis = 5 letters = 50% of AGI

Question 3

If charitable contribution exceeds max deductible?

Answer 3

Can carry over for 5 years, then deduction expires. Current year deductions used first, then earliest carryovers, then more recent carryovers

Question 4

Donating tangible personal property to charity

Answer 4

Either FMV for 30%AGI limit or basis for 50%AGI limit)
- If “Use-Related” (charity uses it), you choose
- If “Use-Unrelated” (eg, charity holds/sells it), use lesser of basis or FMV

Question 5

Deductions for services to a charity

Answer 5

Can only deduct incurred unreimbursed expenses (transportation, lodging, & meals away fr home). Not general expenses (repair/maint., deprec., registration fees, tires, insurance).
Deduct either (a) costs of operating an automobile or (b) $0.14 cents/mile

The value of donated time and services is not considered a charitable contribution. (mock exam)

Question 6

Deduction for Auction Donation

Answer 6

If purchase at auction, can deduct = amount paid – FMV!

Question 7

When is proof or special tax form required to prove charit. donation (for tax return)?

Answer 7

• < $250: Receipt
• ≥ $250: Donor letter (“written acknowledgment”)
• > $500: Form 8283
  Higher amounts may require an appraisal

Question 8

Private Foundations
- Structured as?
- How much have to distribute to public charities each year?

Answer 8

• Etiher a not-for-profit corporation or a tax-exempt trust
• 5%