30 and 20 of agi 38 charitable contributions sub

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Unformatted text preview: ding on type of qualifying organization and type of property donated type These limitations are 50%, 30%, and 20% of AGI 38 Charitable Contributions SUB-LIMITATIONS ON CONTRIBUTIONS Type of Charity Type of Property Contributed GROUP 1 Public Charities GROUP 2 Private, Non-operating Foundation, etc. Cash 50% AGI 30% AGI Ordinary Income Property 50% AGI 30% AGI Sec. 1221 & 1231 Property 30% AGI 20% AGI Exception: If all Sec 1221 & 1231 appreciated property is valued at A/B 50% AGI N/A 39 Charitable Contributions SUB-LIMITATIONS ON CONTRIBUTIONS x Sub-Limitations are applied first, then the overall Sub-Limitations limitation limitation In using the sub-limitations, use higher percentage category items first category x Any charitable contribution not deductible because Any of a percentage limitation is carried forward for up to five years to Carryovers are applied in FIFO order in the carryover year carryover 40 Charitable Contributions EXAMPLE 1 Assume AGI = 50,000 and the art museum sells donated artwork for Assume operating funds. operating Item FMV Contributed Cash 1,000 Valuation of Contribution Church 5,000 300 Art Museum 300 300 450 Private, Non-Operating Foundation 450 450 University 25,000 25,000 A/B 5,000 Artwork Ordinary Income Property 500 Limitation Category Donee Type LTCG Prop 25,000 3,000 TOTAL 50% 30% 5,000 5,000 25,750 41 Charitable Contributions EXAMPLE 1 Applying the limitations x 50% of AGI = 25,000 (50% x 50,000) 30% of AGI = 15,000 (30% x...
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This note was uploaded on 06/06/2011 for the course ACE 346 taught by Professor Peter during the Spring '11 term at University of Illinois, Urbana Champaign.

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