Application of IRS pub 526 charitable contribution limits

Forum|Forum|8 months ago
January 27, 2026
2 replies
93 views

I am planning some significant charitable contributions, and I am confused by the way TT applies IRS pub 526. Here is what I observe as I run three scenarios.

% of AGI as % of AGI as Deducible

Appreciated cash

securities

30 20 50

0 60 60

30 30 50

Can anyone explain why in the third case [donating 30% of AGI as appreciated securities and 30% of AGI as cash) only 50% of the AGI is deductible?

Best answer by DavidD66

Expert Reviewed

There are multiple limits that apply to some donations in certain situations. For example, If you make non-cash contributions (e.g. appreciated stock) to a 50% limit organization, your deduction for the non-cash contributions is limited to 50% of your AGI minus your cash contributions subject to the 60% limit. So in your example above, if AGI was $100K, then your deduction for appreciated stock would be calculated as $50,000 (50% of AGI) - $30,000 (Cash Contribution) = $20,000 limit on deduction for stock (appreciated assets).

When multiple limits apply there is a series of steps you must follow to determine the amount of your contributions that you can deduct. IRS Publication 526 -Charitable Contributions details the The Limits on Deductions and How To Figure Your Deduction When Limits Apply.

D

DavidD66Answer

Level 15

Expert Reviewed

There are multiple limits that apply to some donations in certain situations. For example, If you make non-cash contributions (e.g. appreciated stock) to a 50% limit organization, your deduction for the non-cash contributions is limited to 50% of your AGI minus your cash contributions subject to the 60% limit. So in your example above, if AGI was $100K, then your deduction for appreciated stock would be calculated as $50,000 (50% of AGI) - $30,000 (Cash Contribution) = $20,000 limit on deduction for stock (appreciated assets).

When multiple limits apply there is a series of steps you must follow to determine the amount of your contributions that you can deduct. IRS Publication 526 -Charitable Contributions details the The Limits on Deductions and How To Figure Your Deduction When Limits Apply.

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