Where in TurboTax do I enter the 30% AGI limit for a deduction?

[norske52]

I know the 30% AGI limitation on a donated stock, which has been appreciated. Where in TurboTax do I enter that limit within the deductions section? Thanks in advance.

[SteamTrain]

You don't enter the 30% value yourself...at least not how you appear to think.

You enter the total value of the appreciated stock in the Charitable Donations section....indicating that it was a stock as you start the entry as a Donation.   

Then the tax software will do the limitation calculation, based on what total income you have entered up until that point.   And it will re-calculate the 30% limitation itself as you add in more income.

BUT, the 2024 software is still being worked on and is not completed yet....so I have no idea if that section is working properly yet.    Should be OK by late January of 2025, so I wouldn't necessarily trust anything entered now.

2023 desktop software works OK for those types of donations, so 2024 should do so too, eventually, if it isn't doing so yet.

[norske52]

Thanks. I'm going back to my 2023 return. TT did NOT consider that my donation of appreciated stocks held for more than one year to my DAF (donor-advised fund) was to a "30% charity". 

I'm having a hard time recreating the donation on a hypothetical return.

Sometimes, the dialog asks to select whether or not it's a 30% charity (it mentions fraternal, veterans, or cemetery organizations, as I recall). The phrasing is not very clear, and it does not mention a DAF. 

TT does NOT automatically use the 30% of AGI amount - somewhere, you need to tick a box because it's an unusual situation per TT. 

[SteamTrain]

@norske52 

You just indicate the Donor advised fund is a 50/60% charity in the follow-up question.

(The software only asks once as one of the follow-up questions, as to whether or not it went to any 30% fraternal orgs.....you need to say NO to that for a Donor Advised fund.....if you select the wrong one, you need to delete the donation entirely and start it over, so that the software asks again)

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In my Test 2023 tax return, I had an $85,701 AGI, & entered a donated $50,000 of appreciated stocks (long term), plus some $3k of cash.  After answering all the follow-up stuff, and working all the way out to the main menu page....Then, in my 2023 desktop software, I switched to Forms Mode and saw that the 30% of AGI is calculated on the "Charity Limit 1" worksheet, lines 23-28 (with some math handwaving on those lines, due to the $3k of cash I had also donated to various charities), and the limited/allowed deduction value shows on line 27 and the unused carryover showing on line 28.

The resulting limit should also show up on the "Charity Contrib" worksheet, on line 2 of Part III.

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Yeah, I messed up the first time myself, indicating the donation was to a 30% charity, so I had to delete the donation entirely and re-enter it , indicating No to the 30% Fraternal question, to get it to calculate right.   

A 50/60% charity is the generic designation you need to use, as-if you are donating cash.......but donating stocks is a somewhat hidden subset within the 50/60% charity area.....but you will designate it actually was a stock donation as a part of your donation entry, and the software takes it from there.

(When I had accidentally indicated a 30% charity, that ended up applying a 20% of AGI limit to the appreciated stock)

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I guess what can get mixed up to many/us:

1)  50/60% charity has that limit for cash, and has a 30% of AGI limit for LT appreciated securities as its own donation area subset.

2)  A 30% Fraternal Org/charity has a 30% of AGI cash limit, and a subset at 20% of AGI for LT Appreciated securities.

[SteamTrain]

I tacked on a bit at the end of my last post about the 30% mix-up.

[norske52]

Thanks for the follow-up, @SteamTrain.

That gives me some additional things to follow up with. Especially the notion of totalky deleting a contribution to re-enable the dialogue regarding the type of organization the recipient is. 

[SteamTrain]

I also, just saw in the Forms Mode worksheets one for a:

Charitable Org (Name of donor advised fund).

At the very bottom of that sheet are 4 questions.  1-thru-3 are empty 

but #4 (a) 50%  Charity was "X"-d.   

That's probably from one of the follow-up questions in the interview and should probably be set as such.

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Not sure what 1-thru-3 are for, but perhaps situations for other donation types...I haven't touched them in case there are unintended consequences as I don't mess with my forms much...mostly to see where things end up.