Appreciated assets donated to a public charity may be deducted from income up to which amount?

Study for the Cannon Trust School Level I Exam. Utilize multiple choice questions, complete with hints and explanations. Prepare effectively for your certification!

Multiple Choice

Appreciated assets donated to a public charity may be deducted from income up to which amount?

Explanation:
Donating appreciated assets to a public charity is limited by an adjustment‑of‑income cap. For this type of gift, you can deduct the property's fair market value, but only up to 30% of your adjusted gross income. If the deduction would exceed that limit, you can carry forward the excess for up to five years. This differs from cash gifts to public charities, which have a higher cap (60% of AGI). So, the deductible amount is limited to 30% of AGI, not a percentage of the asset’s value, and not 60% of AGI.

Donating appreciated assets to a public charity is limited by an adjustment‑of‑income cap. For this type of gift, you can deduct the property's fair market value, but only up to 30% of your adjusted gross income. If the deduction would exceed that limit, you can carry forward the excess for up to five years. This differs from cash gifts to public charities, which have a higher cap (60% of AGI). So, the deductible amount is limited to 30% of AGI, not a percentage of the asset’s value, and not 60% of AGI.

More Multiple Choice Questions
Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy