Application of IRS pub 526 charitable contribution limits

[Tom1116]

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? 

[DavidD66]

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.

[Tom1116]

Very clear explanation.  Thank you.