Excess charitable donations

Five year rule for excess charitable donations

If you make charitable donations that are not tax deductible because these charitable contributions exceed the 50%, 30%, or 20% of adjusted gross income charitable contributions limits, you may carry over the excess charitable donations over the next five years.

Original percentage of charitable contribution limit applies

Each year you carry over excess charitable contributions limit, the original percentage of charitable contribution limit applies.

Example of carrying over excess charitable contributions

For example, charitable contributions of appreciated long term intangible personal property or real estate or tangible personal property put to a related use by the charity exceed the 30% charitable contributions limit for capital gain property, the excess remains of charitable giving are subject to the same 30% charitable contributions limit in years the charitable contributions are carried over.

Carryover of charitable contributions years rule

In any years the charitable contributions are carried over, you must first figure out your charitable deduction for charitable contributions in the current year under the applicable charitable contribution limits of 50%, 30%, or 20% charitable giving limits. For each category of property carried over, the carryover charitable contributions are tax deductible only after the tax deduction of the current year charitable donations is figured.

The total charitable tax deduction in the carryover of charitable giving year, for both the current year and carryover contributions cannot exceed 50% of adjusted gross income for the carryover year.

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