2022 Charity Limit for capital gain property when maximizing donations

[excel20]

This is probably not a change - I just want to confirm my understanding. In 2022 the maximum deductible charitable deduction is 60% of AGI. I thought that you could achieve this with a combination of cash and appreciated securities. However, TT2022 seems to limit the total contribution to 50% of AGI when property is included (form charity limit section D).

For example, with 100K$ income, the max deduction is 60K$. If I enter 50K$ or more in for cash contributions, any donations of securities gets pushed out to carryover. So to achieve a 60% deduction, all donations need to be cash.

Is my understanding correct, or is there a way to achieve a 60% deduction and include appreciated securities?

[Mike9241 · Accepted solution]

if your deducting the FMV of the capital gain property the actual limit is 50% of AGI

if you reduce the deductions for capital gain property to cost you get a 60% deduction see IRS pub 526.

worksheet 2 in the pub

example from pub 526

Example 2. You donated clothing to your church with a fair market value of $200. The limit based on 60% of AGI doesn’t apply because the contribution is not cash. Instead, a limit based on 50% of AGI discussed later will apply to the contribution to the church because it is an organization described earlier under First category of qualified organizations (50% limit organizations).