Individual Taxation: Itemized Deductions

Question 1

Charitable Cash Donations: what is the IRS limitation?

Answer 1

Can deduct contributions up to 60% of AGI

Question 2

Charitable Property Donations: what is the IRS limitation?

Answer 2

For property held for < 1 year (short-term), the deduction is limited to the lower of the tax basis or the FMV on the date of the contribution

For property held for >1 year (long-term), the deduction is the FMV of the long-term capital gain, limited to 30% of AGI

Question 3

Can charitable deductions be carried back?

Answer 3

No, they cannot be carried back but they can be carried forward for 5 years