What is Charitable contribution limits?
In short
Individuals can deduct cash gifts to public charities up to 60% of adjusted gross income, and gifts of long-term capital gain property, usually at fair market value, up to 30%. Amounts over the limits carry forward for 5 years.
Key takeaways
- Gifts to private nonoperating foundations have lower limits: 30% for cash and 20% for capital gain property.
- From 2026, itemizers deduct only gifts above 0.5% of adjusted gross income, and non-itemizers can deduct up to $1,000 ($2,000 joint) of cash gifts.
- Corporations are limited to 10% of taxable income, and from 2026 deduct only gifts above 1% of taxable income.
Where it's tested
REG: Individual Taxation: Adjustments & Deductions — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
Cash contributions by an individual to a public charity are deductible as an itemized deduction up to what percentage of AGI?