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CARES Act Charitable Giving

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Level 1

I have a wealthy client who wants to gift the maximum in 2020.  Her AGI is projected to be $2.798m.  She has already gifted $600k of appreciated securities and now wants to gift cash.  The only guidance I can find says she calculates the appreciated securities separately then can apply the remainder in cash.  The worksheet in Pub 526 has not been updated for 2020.  Can she gift an additional $2.198k or $798k (the $600k "using up" $2.0m of AGI?).  I realize she has other itemized deductions but not a significant amount.  I don't want to make a mistake here... 

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Level 11
Level 11

This from IRS: the link:

 https://www.irs.gov/charities-non-profits/charitable-organizations/charitable-contribution-deduction...

Temporary Suspension of Limits on Charitable Contributions

In most cases, the amount of charitable cash contributions taxpayers can deduct on Schedule A as an itemized deduction is limited to a percentage (usually 60 percent) of the taxpayer’s adjusted gross income (AGI). Qualified contributions are not subject to this limitation. Individuals may deduct qualified contributions of up to 100 percent of their adjusted gross income. A corporation may deduct qualified contributions of up to 25 percent of its taxable income. Contributions that exceed that amount can carry over to the next tax year. To qualify, the contribution must be: 

  • a cash contribution;
  • made to a qualifying organization;
  • made during the calendar year 2020

Contributions of non-cash property do not qualify for this relief. Taxpayers may still claim non-cash contributions as a deduction, subject to the normal limits.

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1 Reply 1
Highlighted
Level 11
Level 11

This from IRS: the link:

 https://www.irs.gov/charities-non-profits/charitable-organizations/charitable-contribution-deduction...

Temporary Suspension of Limits on Charitable Contributions

In most cases, the amount of charitable cash contributions taxpayers can deduct on Schedule A as an itemized deduction is limited to a percentage (usually 60 percent) of the taxpayer’s adjusted gross income (AGI). Qualified contributions are not subject to this limitation. Individuals may deduct qualified contributions of up to 100 percent of their adjusted gross income. A corporation may deduct qualified contributions of up to 25 percent of its taxable income. Contributions that exceed that amount can carry over to the next tax year. To qualify, the contribution must be: 

  • a cash contribution;
  • made to a qualifying organization;
  • made during the calendar year 2020

Contributions of non-cash property do not qualify for this relief. Taxpayers may still claim non-cash contributions as a deduction, subject to the normal limits.

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