Charitable Contribution Carryover and 100% Current Contributions - Spidell

Charitable Contribution Carryover and 100% Current Contributions

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Message Board Charitable Contribution Carryover and 100% Current Contributions

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    • #267322
      Barbara Foust
      Participant

      Do you had any guidance related to the usage of charitable contribution carryovers in 2020 with the new 100% cash contribution deduction.

      If a taxpayer that has a large 30% contribution carryover to 2020 because they donated property in 2019 to a 50% charity and they are also interested in making a large cash contribution in 2020, can they contribute cash contributions of 70% of their AGI and still deduct their carryover up to 30% of their AGI?

      According to the IRS publication 526, the amount of carryover that you can use appears to be limited to 50% of AGI.  So for example if taxpayer had $100k of income, they could use $30k of the contribution carryover and $20k of cash contribution.   Any additional cash contribution would reduce the usage of the 30% contribution carryover.

      However in 2020, could a taxpayer make a $70k cash contribution and still use up $30k of the contribution carryover?  We want the taxpayer to use up as much of the 30% carryover since the 5 year clock is ticking

    • #267635
      Mike Giangrande
      Participant

      I don’t have any specific guidance, but the general ordering rules for charitable contributions require you to use current year contributions first, then dig into carryovers.

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