yl71198
New Member

Does charitable deduction offset your ordinary income first before long term capital gains?

Hi, there. While I understand that charitable deduction will reduce AGI, but since capital gains are added onto AGI, when you deduct income from AGI, does it offset ordinary income first and only if you run out of ordinary income, then will it deduct off of capital gains? And if it does offset ordinary income first, and is the next one short term capital gains and then lastly long term capital gains? Thanks for answering!