Charitable Giving Limitations

Question 1

Which of the following requirements must be met to deduct a charitable donation?

A. Donation must be to a Qualified Charity
B. Cannot be for political candidate or for lobbying efforts or to a specific individual
C. Cannot be to a professional or alumni society
D. Cannot produce a direct benefit to you
E. Cannot be in the form or labor or other services you perform as a volunteer
F. Cannot exceed 60% of AGI for cash or 30% of capital appreciation property
G. Must deducted as an itemized expense

Answer 1

All of the above

Question 2

How are the following types of donated property valued for purposes of determining the tax deduction?

Ordinary Income Property

Capital Appreciation Property

Answer 2

Ordinary Income Property - Valued at donors basis

Capital Appreciation Property - Fair Market Value

Question 3

Defined the following as they related rules for charitable donations:

Ordinary Income Property

Capital Appreciation Property

Answer 3

Ordinary Income Property - Property which if sold on the day of donation would generate a short-term capital gain taxed as ordinary income

Capital Appreciation Property - Appreciated property held for at least a year, which if sold on the day of donation, would generate a long-term capital gain.

Question 4

Which of the following types of donations cannot be deducted

A. Donations to a political candidate or for lobbying efforts
B. Gifts to an individual of any kind
C. Donations to a professional or alumni society
D. Donations of personal time or labor
E. Donations that produce a direct personal financial benefit
F. Reasonable personal expenses (car costs, etc) related to donating personal time or labor

Answer 4

A through E cannot be deducted.

F can be deducted subject IRS rules and limitations

Question 5

Charitable contributions must be taken as itemized expenses on Schedule A to receive a tax deduction. There is one exception to this. What is it?

Answer 5

Qualified Charitable Distributions from a retirement account.

Question 6

T or F - The Tax Cuts and Jobs Act of 2018 raised the amount that can be deducted from 50% of AGI to 60% of AGI

Answer 6

True

Question 7

What are the carry over rules for charitable contributions that exceed the annual 60% AGI limitation?

Answer 7

Any contributions over the 60% AGI limit can be carried over to future years for up to five years.