For the latest information about developments related to Pub. 526 (such as legislation enacted after we release it), go to IRS.gov/Pub526.
Disallowance of deduction for certain conservation contributions by pass-through entities. Subject to some exceptions, if you are a member of a pass-through entity (such as a partner in a partnership or a shareholder in an S corporation), and the amount of the pass-through entity’s qualified conservation contribution exceeds 2.5 times the sum of each member’s relevant basis, the contribution is not treated as a qualified conservation contribution and no one may claim a deduction for the contribution. Thus, your charitable conservation contribution deduction is disallowed. See Disallowance of deductions for certain conservation contributions by pass-through entities later.
Qualified charitable distribution one-time election. Beginning in 2023, you can elect to make a one-time distribution up to $50,000 from an individual retirement account to charities through a charitable remainder annuity trust, a charitable remainder unitrust, or a charitable gift annuity each of which is funded only by qualified charitable distributions. See Pub. 590-B for more information.
Charitable contributions for non-itemizers. The temporary deduction for charitable cash contributions for taxpayers who do not itemize their tax returns has expired and is no longer available.
Deduction over $5,000. You must complete Section B of Form 8283 for each item—or group of similar non-cash items— for which you claim a deduction of over $5,000 except as provided in Deductions Over $5,000 , later. The organization that received the property must complete and sign Part V of Section B, Form 8283.
Reduced deductibility of state and local tax credits. If you make a payment or transfer property to or for the use of a qualified organization and you receive or expect to receive a state or local tax credit or a state or local tax deduction in return, your charitable contribution deduction may be reduced. See State or local tax credit , later.
Photographs of missing children. The IRS is a proud partner with the National Center for Missing & Exploited Children® (NCMEC). Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 800-THE-LOST (800-843-5678) or visiting www.missingkids.org if you recognize a child.
This publication explains how individuals claim a deduction for charitable contributions. It discusses the types of organizations to which you can make deductible charitable contributions and the types of contributions you can deduct. It also discusses how much you can deduct, what records you must keep, and how to report charitable contributions.
A charitable contribution is a donation or gift to, or for the use of, a qualified organization. It is voluntary and is made without getting, or expecting to get, anything of equal value.
Qualified organizations.
Qualified organizations include nonprofit groups that are religious, charitable, educational, scientific, or literary in purpose, or that work to prevent cruelty to children or animals. You will find descriptions of these organizations under Organizations That Qualify To Receive Deductible Contributions .
Schedule A (Form 1040) required.
Generally, to deduct a charitable contribution, you must itemize deductions on Schedule A (Form 1040). The amount of your deduction may be limited if certain rules and limits explained in this publication apply to you.
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You can send us comments through IRS.gov/FormComments. Or, you can write to the Internal Revenue Service, Tax Forms and Publications, 1111 Constitution Ave. NW, IR-6526, Washington, DC 20224.
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You can deduct your contributions only if you make them to a qualified organization.
How to check whether an organization can receive deductible charitable contributions.
You can ask any organization whether it is a qualified organization, and most will be able to tell you. You can also check by going to IRS.gov/TEOS. This online tool will enable you to search for qualified organizations.
Generally, only the following types of organizations can be qualified organizations.
Examples.
The following list gives some examples of qualified organizations.
Canadian charities.
You may be able to deduct contributions to certain Canadian charitable organizations covered under an income tax treaty with Canada. To deduct your contribution to a Canadian charity, you must generally have income from sources in Canada. See Pub. 597, Information on the United States–Canada Income Tax Treaty, for information on how to figure your deduction.
Mexican charities.
Under the United States–Mexico income tax treaty, a contribution to a Mexican charitable organization may be deductible, but only if and to the extent the contribution would have been treated as a charitable contribution to a public charity created or organized under U.S. law. To deduct your contribution to a Mexican charity, you must have income from sources in Mexico. The limits described in Limits on Deductions , later, apply and are figured using your income from Mexican sources.
Israeli charities.
Under the United States–Israel income tax treaty, a contribution to an Israeli charitable organization is deductible if and to the extent the contribution would have been treated as a charitable contribution if the organization had been created or organized under U.S. law. To deduct your contribution to an Israeli charity, you must have income from sources in Israel. The limits described in Limits on Deductions , later, apply. The deduction is also limited to 25% of your AGI from Israeli sources.
Generally, you can deduct contributions of money or property you make to, or for the use of, a qualified organization. A contribution is “for the use of” a qualified organization when it is held in a legally enforceable trust for the qualified organization or in a similar legal arrangement.
The contributions must be made to a qualified organization and not set aside for use by a specific person.
If you give property to a qualified organization, you can generally deduct the fair market value (FMV) of the property at the time of the contribution. See Contributions of Property , later.
Your deduction for charitable contributions generally can't be more than 60% of your AGI, but in some cases 20%, 30%, or 50% limits may apply.
Table 1 gives examples of contributions you can and can't deduct.
Use the following lists for a quick check of whether you can deduct a contribution. See the rest of this publication for more information and additional rules and limits that may apply.
Expenses paid for a student living with you, sponsored by a qualified organization
Cost of raffle, bingo, or lottery tickets
Dues, fees, or bills paid to country clubs, lodges, fraternal orders, or similar groups
Value of your time or services
If you receive a benefit as a result of making a contribution to a qualified organization, you can deduct only the amount of your contribution that is more than the value of the benefit you receive. Also see Contributions From Which You Benefit under Contributions You Can't Deduct , later.
If you pay more than FMV to a qualified organization for goods or services, the excess may be a charitable contribution. For the excess amount to qualify, you must pay it with the intent to make a charitable contribution.
Example 1.
You pay $65 for a ticket to a dinner dance at a church. Your entire $65 payment goes to the church. The ticket to the dinner dance has an FMV of $25. When you buy your ticket, you know its value is less than your payment. To figure the amount of your charitable contribution, subtract the value of the benefit you receive ($25) from your total payment ($65). You can deduct $40 as a charitable contribution to the church.
Example 2.
At a fundraising auction conducted by a charity, you pay $600 for a week's stay at a beach house. The amount you pay is no more than the fair rental value. You haven't made a deductible charitable contribution.
Charity benefit events.
If you pay a qualified organization more than FMV for the right to attend a charity ball, banquet, show, sporting event, or other benefit event, you can deduct only the amount that is more than the value of the privileges or other benefits you receive.
If there is an established charge for the event, that charge is the value of your benefit. If there is no established charge, the reasonable value of the right to attend the event is the value of your benefit. Whether you use the tickets or other privileges has no effect on the amount you can deduct. However, if you return the ticket to the qualified organization for resale, you can deduct the entire amount you paid for the ticket.
. Even if the ticket or other evidence of payment indicates that the payment is a “contribution,” this doesn't mean you can deduct the entire amount. If the ticket shows the price of admission and the amount of the contribution, you can deduct the contribution amount. .
Example.
You pay $40 to see a special showing of a movie for the benefit of a qualified organization. Printed on the ticket is “Contribution—$40.” If the regular price for the movie is $8, your contribution is $32 ($40 payment − $8 regular price).
State or local tax credit.
If you make a payment or transfer property to or for the use of a qualified organization and receive or expect to receive a state or local tax credit in return, then the amount treated as a charitable contribution deduction is reduced by the amount of the state or local tax credit you receive or expect to receive in consideration for your payment or transfer, but an exception may apply. If an exception doesn’t apply, you must reduce your charitable contribution deduction even if you can’t claim the state tax credit in the year.
Exception.
If the state or local tax credit you receive or expect to receive doesn’t exceed 15% of your payment amount or 15% of the FMV of the transferred property, then your charitable contribution deduction isn’t reduced.
Example 1.
You make a cash contribution of $1,000 to charity X, a qualified organization. In return for your payment you receive or expect to receive a state tax credit of 70% of your $1,000 contribution. The amount of your charitable contribution to charity X is reduced by $700 (70% of $1,000). The result is your charitable contribution deduction to charity X can’t exceed $300 ($1,000 donation−$700 state tax credit). The reduction applies even if you can’t claim the state tax credit for that year. Your deductible charitable contribution to charity X is $300. Your total contributions may still be subject to limitations. See Limits on Deductions , later.
Example 2.
You donate a painting to charity Y, a qualified organization. At the time of the donation, the painting has an FMV of $100,000. In return for the painting, you receive or expect to receive a state tax credit of 10% of the FMV of the painting. The state tax credit is $10,000 (10% of $100,000). The amount of your state tax credit does not exceed 15% of the FMV of the painting. As a result, your charitable contribution deduction to charity Y is not reduced. Your deductible charitable contribution for your noncash contribution to charity Y is $100,000. However, your total contributions may still be subject to limitations. See Limits on Deductions , later.
State or local tax deduction.
If you make a payment or transfer property to a qualified organization and receive or expect to receive a state or local tax deduction in return, then the amount of your charitable contribution deduction to the organization may be reduced in some circumstances. If the amount of the state or local tax deduction exceeds the amount of your cash contribution or the FMV of the transferred property, then your charitable contribution deduction is reduced. However, if the amount of the state or local tax deduction doesn’t exceed the amount of your payment or the FMV of the transferred property, then no reduction is necessary.
Example 1.
You make a cash contribution of $1,000 to charity Z, a qualified organization. Under state law, you are entitled to receive a state tax deduction of $1,000 in return for your payment. The amount of your charitable contribution deduction to charity Z isn’t reduced. Your charitable contribution deduction to charity Z is $1,000. However, your total contributions may still be subject to limitations. See Limits on Deductions , later.
Membership fees or dues.
You may be able to deduct membership fees or dues you pay to a qualified organization. However, you can deduct only the amount that is more than the value of the benefits you receive.
You can't deduct dues, fees, or assessments paid to country clubs and other social organizations. They aren't qualified organizations.
Certain membership benefits can be disregarded.
Both you and the organization can disregard the following membership benefits if you get them in return for an annual payment of $75 or less.
But, item (1) doesn’t include rights to purchase tickets for seating at an athletic event in an athletic stadium of a college or university as a result of a contribution to such institution.
Token items.
You don't have to reduce your contribution by the value of any benefit you receive if both of the following are true.
The organization determines whether the value of an item or benefit is substantial by using Revenue Procedures 90-12 and 92-49 and the inflation adjustment in Revenue Procedure 2022-38.
Written statement.
A qualified organization must give you a written statement if you make a payment of more than $75 that is partly a contribution and partly for goods or services. The statement must say you can deduct only the amount of your payment that is more than the value of the goods or services you received. It must also give you a good faith estimate of the value of those goods or services.
The organization can give you the statement either when it solicits or when it receives the payment from you.
Exception.
An organization won't have to give you this statement if one of the following is true.
You may be able to deduct some expenses of having a student live with you. You can deduct qualifying expenses for a foreign or American student who:
. You can deduct up to $50 a month for each full calendar month the student lives with you. Any month when conditions (1) through (3) are met for 15 or more days counts as a full month. .
Qualified organization.
For these purposes, a qualified organization can be any of the organizations described earlier under Types of Qualified Organizations , except those in (4) and (5). For example, if you are providing a home for a student as part of a state or local government program, you can't deduct your expenses as charitable contributions. But see Foster parents under Out-of-Pocket Expenses in Giving Services , later, if you provide the home as a foster parent.
Relative.
The term “relative” means any of the following persons.
Dependent.
For this purpose, the term “dependent” means:
. Foreign students brought to this country under a qualified international education exchange program and placed in American homes for a temporary period generally aren't U.S. residents and can't be claimed as dependents. .
Qualifying expenses.
You may be able to deduct the cost of books, tuition, food, clothing, transportation, medical and dental care, entertainment, and other amounts you actually spend for the well-being of the student.
Expenses that don't qualify.
You can't deduct depreciation on your home, the FMV of lodging, and similar items not considered amounts actually spent by you. Nor can you deduct general household expenses, such as taxes, insurance, and repairs.
Reimbursed expenses.
In most cases, you can't claim a charitable contribution deduction if you are compensated or reimbursed for any part of the costs of having a student live with you. However, you may be able to claim a charitable contribution deduction for the unreimbursed portion of your expenses if you are reimbursed only for an extraordinary or one-time item, such as a hospital bill or vacation trip, you paid in advance at the request of the student's parents or the sponsoring organization.
Mutual exchange program.
You can't deduct the costs of a foreign student living in your home under a mutual exchange program through which your child will live with a family in a foreign country.
Reporting expenses.
For a list of what you must file with your return if you deduct expenses for a student living with you, see Reporting expenses for student living with you under How To Report , later.
If you volunteer for a qualified organization, the following questions and answers may apply to you. All of the rules explained in this publication also apply. See, in particular, Out-of-Pocket Expenses in Giving Services .
| Question | Answer |
| I volunteer 6 hours a week in the office of a qualified organization. The receptionist is paid $10 an hour for the same work. Can I deduct $60 a week for my time? | No, you can't deduct the value of your time or services. |
| The office is 30 miles from my home. Can I deduct any of my car expenses for these trips? | Yes, you can deduct the costs of gas and oil that are directly related to getting to and from the place where you volunteer. If you don't want to figure your actual costs, you can deduct 14 cents for each mile. |
| I volunteer as a Red Cross nurse's aide at a hospital. Can I deduct the cost of the uniforms I must wear? | Yes, you can deduct the cost of buying and cleaning your uniforms if the hospital is a qualified organization, the uniforms aren't suitable for everyday use, and you must wear them when volunteering. |
| I pay a babysitter to watch my children while I volunteer for a qualified organization. Can I deduct these costs? | No, you can't deduct payments for childcare expenses as a charitable contribution, even if you would be unable to volunteer without childcare. (If you have childcare expenses so you can work for pay, see Pub. 503, Child and Dependent Care Expenses.) |
Although you can't deduct the value of your services given to a qualified organization, you may be able to deduct some amounts you pay in giving services to a qualified organization. The amounts must be:
Table 2 contains questions and answers that apply to some individuals who volunteer their services.
Underprivileged youths selected by charity.
You can deduct reasonable unreimbursed out-of-pocket expenses you pay to allow underprivileged youths to attend athletic events, movies, or dinners. The youths must be selected by a charitable organization whose goal is to reduce juvenile delinquency. Your own similar expenses in accompanying the youths aren't deductible.
Conventions.
If a qualified organization selects you to attend a convention as its representative, you can deduct your unreimbursed expenses for travel, including reasonable amounts for meals and lodging, while away from home overnight for the convention. However, see Travel , later.
You can't deduct personal expenses for sightseeing, fishing parties, theater tickets, or nightclubs. You also can't deduct travel, meals and lodging, and other expenses for your spouse or children.
You can't deduct your travel expenses in attending a church convention if you go only as a member of your church rather than as a chosen representative. You can, however, deduct unreimbursed expenses that are directly connected with giving services for your church during the convention.
Uniforms.
You can deduct the cost and upkeep of uniforms that aren't suitable for everyday use and that you must wear while performing donated services for a qualified organization.
Foster parents.
You may be able to deduct as a charitable contribution some of the costs of being a foster parent (foster care provider) if you have no profit motive in providing the foster care and aren't, in fact, making a profit. A qualified organization must select the individuals you take into your home for foster care.
You can deduct expenses that meet both of the following requirements.
Unreimbursed expenses that you can't deduct as charitable contributions may be considered support provided by you in determining whether you can claim the foster child as a dependent. For details, see Pub. 501, Dependents, Standard Deduction, and Filing Information.
Example.
You cared for a foster child because you wanted to adopt her, not to benefit the agency that placed her in your home. Your unreimbursed expenses aren't deductible as charitable contributions.
Church deacon.
You can deduct as a charitable contribution any unreimbursed expenses you have while in a permanent diaconate program established by your church. These expenses include the cost of vestments, books, and transportation required in order to serve in the program as either a deacon candidate or an ordained deacon.
Car expenses.
You can deduct as a charitable contribution any unreimbursed out-of-pocket expenses, such as the cost of gas and oil, directly related to the use of your car in giving services to a charitable organization. You can't deduct general repair and maintenance expenses, depreciation, registration fees, or the costs of tires or insurance.
If you don't want to deduct your actual expenses, you can use a standard mileage rate of 14 cents a mile to figure your contribution.
You can deduct parking fees and tolls whether you use your actual expenses or the standard mileage rate.
You must keep reliable written records of your car expenses. For more information, see Car expenses under Substantiation Requirements , later.
Travel.
Generally, you can claim a charitable contribution deduction for travel expenses necessarily incurred while you are away from home performing services for a qualified organization only if there is no significant element of personal pleasure, recreation, or vacation in the travel. This applies whether you pay the expenses directly or indirectly. You are paying the expenses indirectly if you make a payment to the qualified organization and the organization pays for your travel expenses.
The deduction for travel expenses won't be denied simply because you enjoy providing services to the qualified organization. Even if you enjoy the trip, you can take a charitable contribution deduction for your travel expenses if you are on duty in a genuine and substantial sense throughout the trip. However, if you have only nominal duties, or if for significant parts of the trip you don't have any duties, you can't deduct your travel expenses.
Example 1.
You are a troop leader for a tax-exempt youth group and you take the group on a camping trip. You are responsible for overseeing the setup of the camp and for providing adult supervision for other activities during the entire trip. You participate in the activities of the group and enjoy your time with them. You oversee the breaking of camp and you transport the group home. You can deduct your travel expenses.
Example 2.
You sail from one island to another and spend 8 hours a day counting whales and other forms of marine life. The project is sponsored by a qualified organization. In most circumstances, you can't deduct your expenses.
Example 3.
You work for several hours each morning on an archeological dig sponsored by a qualified organization. The rest of the day is free for recreation and sightseeing. You can't take a charitable contribution deduction even though you work very hard during those few hours.
Example 4.
You spend the entire day attending a qualified organization's regional meeting as a chosen representative. In the evening you go to the theater. You can claim your travel expenses as charitable contributions, but you can't claim the cost of your evening at the theater.
Daily allowance (per diem).
If you provide services for a qualified organization and receive a daily allowance to cover reasonable travel expenses, including meals and lodging while away from home overnight, you must include in income any part of the allowance that is more than your deductible travel expenses. You may be able to deduct any necessary travel expenses that are more than the allowance.
Deductible travel expenses.
Because these travel expenses aren't business-related, they aren't subject to the same limits as business-related expenses. For information on business travel expenses, see Travel in Pub. 463, Travel, Gift, and Car Expenses.
You may be able to deduct as a charitable contribution any reasonable and necessary whaling expenses you pay during the year to carry out sanctioned whaling activities. The deduction is limited to $10,000 a year. To claim the deduction, you must be recognized by the Alaska Eskimo Whaling Commission as a whaling captain charged with the responsibility of maintaining and carrying out sanctioned whaling activities.
Sanctioned whaling activities are subsistence bowhead whale hunting activities conducted under the management plan of the Alaska Eskimo Whaling Commission.
Whaling expenses include expenses for:
. You must keep records showing the time, place, date, amount, and nature of the expenses. For details, see Revenue Procedure 2006-50, 2006-47 I.R.B. 944, available at IRS.gov/irb/2006-47_IRB#RP-2006-50. .
There are some contributions you can't deduct and others you can deduct only in part.
You can't deduct as a charitable contribution:
Detailed discussions of these items follow.
You can't deduct contributions to specific individuals, including the following.
You can't deduct contributions to organizations that aren't qualified to receive tax-deductible contributions, including the following.
If you receive or expect to receive a financial or economic benefit as a result of making a contribution to a qualified organization, you can't deduct the part of the contribution that represents the value of the benefit you receive. See Contributions From Which You Benefit under Contributions You Can Deduct , earlier. These contributions include the following.
A qualified charitable distribution (QCD) is a distribution made directly by the trustee of your individual retirement arrangement (IRA), other than an SEP or SIMPLE IRA, to certain qualified organizations. You must have been at least age 70½ when the distribution was made. Your total QCDs for the year can't be more than $100,000. If all the requirements are met, a QCD may be nontaxable; however, if the QCD is nontaxable, you may not be able to claim it as a charitable contribution deduction. You may be able to claim a charitable contribution deduction if you claim the income you are deducting as a qualified contribution. See Pub. 590-B, Distributions from Individual Retirement Arrangements (IRAs), for more information about QCDs.
Qualified charitable distribution one-time election.
For tax years beginning after 2022, you can elect to make a one-time distribution of up to $50,000 from an individual retirement account. This one-time distribution may be made through a charitable remainder trust, a charitable remainder unitrust, or a charitable gift annuity funded only by qualified charitable distributions.
You can't deduct the value of your time or services, including:
You can't deduct personal, living, or family expenses, such as the following items.
You can't deduct as a charitable contribution any fees you pay to find the FMV of donated property.
You can't deduct a contribution to a donor-advised fund if:
There are also other circumstances in which you can't deduct your contribution to a donor-advised fund.
Generally, a donor-advised fund is a fund or account in which a donor can, because of being a donor, advise the fund how to distribute or invest amounts held in the fund. For details, see Internal Revenue Code section 170(f)(18).
Generally, you can't deduct a contribution of less than your entire interest in property. For details, see Partial Interest in Property under Contributions of Property , later.
If you contribute property to a qualified organization, the amount of your charitable contribution is generally the FMV of the property at the time of the contribution. However, if the property has increased in value, you may have to make some adjustments to the amount of your deduction. See Giving Property That Has Increased in Value , later.
For information about the records you must keep and the information you must furnish with your return if you donate property, see Substantiation Requirements and How To Report , later.
Special rules apply if you contribute:
These special rules are described next.
You can't take a deduction for clothing or household items you donate unless the clothing or household items are in good used condition or better.
Exception.
You can take a deduction for a contribution of an item of clothing or a household item that isn't in good used condition or better if you deduct more than $500 for it, and include a qualified appraisal prepared by a qualified appraiser and a completed Form 8283, Section B.
Household items.
Household items include:
Household items don't include:
FMV.
To determine the FMV of these items, use the rules under Determining FMV , later.
The following rules apply to any donation of a qualified vehicle.
A qualified vehicle is:
Deduction more than $500.
If you donate a qualified vehicle with a claimed FMV of more than $500, you can deduct the smaller of:
Form 1098-C.
You must attach to your return Copy B of the Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes, (or other statement containing the same information as Form 1098-C) you received from the organization. The Form 1098-C (or other statement) will show the gross proceeds from the sale of the vehicle.
If you e-file your return, you must:
If you don't attach Form 1098-C (or other statement), you can't deduct your contribution.
You must get Form 1098-C (or other statement) within 30 days of the sale of the vehicle. But if Exception 1 or 2 (described later) applies, you must get Form 1098-C (or other statement) within 30 days of your donation.
Filing deadline approaching and still no Form 1098-C.
If the filing deadline is approaching and you still don't have a Form 1098-C, you have two choices.
Exceptions.
There are two exceptions to the rules just described for deductions of more than $500.
Exception 1—Vehicle used or improved by organization.
If the qualified organization makes a significant intervening use of, or material improvement to, the vehicle before transferring it, you can generally deduct the vehicle's FMV at the time of the contribution. But if the vehicle's FMV was more than your cost or other basis, you may have to reduce the FMV to get the deductible amount, as described under Giving Property That Has Increased in Value , later. The Form 1098-C (or other statement) will show whether this exception applies.
Exception 2—Vehicle given or sold to needy individual.
If the qualified organization will give the vehicle, or sell it for a price well below FMV, to a needy individual to further the organization's charitable purpose, you can generally deduct the vehicle's FMV at the time of the contribution. But if the vehicle's FMV was more than your cost or other basis, you may have to reduce the FMV to get the deductible amount, as described under Giving Property That Has Increased in Value , later. The Form 1098-C (or other statement) will show whether this exception applies.
This exception doesn't apply if the organization sells the vehicle at auction. In that case, you can't deduct the vehicle's FMV.
Example.
You donate a used car to a qualified organization. You bought it 3 years ago for $9,000. A used car guide shows the FMV for this type of car is $6,000. However, you get a Form 1098-C from the organization showing the car was sold for $2,900. Neither Exception 1 nor Exception 2 applies. If you itemize your deductions, you can deduct $2,900 for the donation. You must attach Form 1098-C and Form 8283, Noncash Charitable Contributions, to your tax return.
Deduction $500 or less.
If the qualified organization sells the vehicle for $500 or less and Exceptions 1 and 2 don't apply, you can deduct the smaller of:
If the vehicle's FMV is at least $250 but not more than $500, you must have a written statement from the qualified organization acknowledging your donation. The statement must contain the information and meet the tests for an acknowledgment described under Deductions of at Least $250 but Not More Than $500 under Substantiation Requirements , later.
FMV.
To determine a vehicle's FMV, use the rules described under Determining FMV , later.
Donations of inventory.
The vehicle donation rules just described don't apply to donations of inventory. For example, these rules don't apply if you are a car dealer who donates a car you had been holding for sale to customers. See Inventory , later.
If you donate taxidermy property to a qualified organization, your deduction is limited to your basis in the property or its FMV, whichever is less. This applies if you prepared, stuffed, or mounted the property or paid or incurred the cost of preparing, stuffing, or mounting the property.
Your basis for this purpose includes only the cost of preparing, stuffing, and mounting the property. Your basis doesn't include transportation or travel costs. It also doesn't include the direct or indirect costs for hunting or killing an animal, such as equipment costs. In addition, it doesn't include the value of your time.
Taxidermy property means any work of art that:
If you contribute property subject to a debt (such as a mortgage), you must reduce the FMV of the property by:
This prevents you from deducting the same amount as both investment interest and a charitable contribution.
If the recipient (or another person) assumes the debt, you must also reduce the FMV of the property by the amount of the outstanding debt assumed.
The amount of the debt is also treated as an amount realized on the sale or exchange of property for purposes of figuring your taxable gain (if any). For more information, see Bargain Sales under Giving Property That Has Increased in Value , later.
Generally, you can't deduct a charitable contribution of less than your entire interest in property.
Right to use property.
A contribution of the right to use property is a contribution of less than your entire interest in that property and isn't deductible.
Example 1.
You own a 10-story office building and donate rent-free use of the top floor to a qualified organization. Because you still own the building, you have contributed a partial interest in the property and can't take a deduction for the contribution.
Example 2.
You own a vacation home at the beach and sometimes rent it to others. For a fundraising auction at church, you donated the right to use the vacation home for 1 week. At the auction, the church received and accepted a bid equal to the fair rental value of the home for 1 week. You can't claim a deduction because of the partial interest rule. The auction winner can't claim a deduction either, because of the received benefit equal to the amount of the auction winner’s payment. See Contributions From Which You Benefit , earlier.
Exceptions.
You can deduct a charitable contribution of a partial interest in property only if that interest represents one of the following items.
For information about how to figure the value of a contribution of a partial interest in property, see Partial Interest in Property Not in Trust in Pub. 561.
You can't deduct a charitable contribution of a fractional interest in tangible personal property unless all interests in the property are held immediately before the contribution by:
If you make an additional contribution later, the FMV of that contribution will be determined by using the smaller of:
Tangible personal property is defined later under Future Interest in Tangible Personal Property . A fractional interest in property is an undivided portion of your entire interest in the property.
Example.
An undivided one-quarter interest in a painting that entitles an art museum to possession of the painting for 3 months of each year is a fractional interest in the property.
Recapture of deduction.
You must recapture your charitable contribution deduction by including it in your income if both of the following statements are true.
Recapture is also required if the qualified organization hasn't taken substantial physical possession of the property and used it in a way related to the organization's purpose during the period beginning on the date of the initial contribution and ending on the earlier of:
Additional tax.
If you must recapture your deduction, you must also pay interest and an additional tax equal to 10% of the amount recaptured.
A qualified conservation contribution is a contribution of a qualified real property interest to a qualified organization to be used only for conservation purposes.
Qualified organization.
For purposes of a qualified conservation contribution, a qualified organization is:
The organization must also have the resources to monitor and enforce the conservation easement or other conservation restrictions. To enable the organization to do this, it must have documents such as maps and photographs that establish the condition of the property at the time of donation.
A publicly supported charity is an organization of the type described in (1) under Types of Qualified Organizations , earlier, that normally receives a substantial part of its support, other than income from its exempt activities, from direct or indirect contributions from the general public or from governmental units.
Qualified real property interest.
This is any of the following interests in real property.
Conservation purposes.
Your contribution must be made only for one of the following conservation purposes.
Certified historic structures.
A certified historic structure is a building that is listed individually in the National Register of Historic Places (National Register building) or a building that is located in a registered historic district and has been certified by the Secretary of the Interior as contributing to the historic significance of that district (historically significant building). If the individual listing in the National Register of Historic Places consists of a more than one building (e.g., a house, a garage, a mill complex, etc.), the Secretary of the Interior may have to certify which of the multiple buildings qualify as certified historic structures.
A registered historic district is any district listed in the National Register of Historic Places. A state or local historic district may also qualify as a registered historic district if the district and the enabling structures are certified by the Secretary of the Interior. You can claim a deduction for a qualified conservation contribution of a historically significant building. This contribution can take the form of a qualified real property interest that is an easement or other restriction on all or part of the exterior or interior of the building. You can claim a deduction for a qualified conservation contribution of a historically significant building. This contribution can take the form of a contribution of a qualified real property interest that is an easement or other restriction on all or part of the interior of the building. However, you cannot claim a deduction for a contribution of a qualified real property interest that is an easement or other restriction on the exterior of the building unless the easement or other restriction meets all of the following conditions:
If you claim a deduction of more than $10,000 and donated an exterior restriction on a National Register building or historic district building, your deduction won’t be allowed unless you pay a $500 filing fee. See Form 8283-V, Payment Voucher for Filing Fee Under Section 170(f)(13), and its instructions.
If you claimed the rehabilitation credit for a National Register building or historically significant building for any of the 5 years before the year of the qualified conservation contribution, your charitable deduction is reduced. For more information, see Form 3468, Investment Credit, and Internal Revenue Code section 170(f)(14). For more information on how an NPS # applies to a certified historic structure, see Easements on certified historic structures , in the instructions for Form 8283.
Disallowance of deductions for certain conservation contributions by pass-through entities.
Subject to three exceptions, if you are a member of a pass-through entity (such as a partner in a partnership or a shareholder in an S corporation) and the amount of a qualified conservation contribution by the pass-through entity exceeds 2.5 times the sum of each member’s relevant basis, the contribution is not treated as a qualified conservation contribution and no one may claim a deduction for the contribution. Thus, your charitable conservation contribution deduction is disallowed.
The pass-through entity must determine each member’s relevant basis. Relevant basis is, with respect to any member, the portion of the member’s modified basis in its interest in the pass-through entity which is allocable to the portion of the real property with respect to which the qualified conservation contribution is made. Modified basis is, with respect to any member, the adjusted basis in the member’s interest in the pass-through entity as determined:
Exceptions.
As before mentioned, there are three exceptions to this disallowance.
Exception 1—Contribution outside three-year period. This disallowance does not apply if the qualified conservation contribution is made at least three years after the latest of:
Exception 2—Family partnership. This disallowance does not apply to a qualified conservation contribution made by a family pass-through entity. Family pass-through entities are pass-through entities in which substantially all of the interests are held, directly or indirectly, by an individual and members of the family of such individual. For these purposes, members of the family are defined as the spouse of such individual and any individual described in Internal Revenue Code section 152(d)(2)(A)–(G).
Exception 3—Historic structure. This disallowance does not apply if the purpose of the qualified conservation contribution is the preservation of a certified historic structure. See Certified historic structures , earlier.
More information.
For information about determining the FMV of qualified conservation contributions, see Pub. 561 and the instructions for Form 8283. For information about the limits that apply to deductions for this type of contribution, see Limits on Deductions , later. For more information about qualified conservation contributions, see Regulations section 1.170A-14.
You can't deduct the value of a charitable contribution of a future interest in tangible personal property until all intervening interests in and rights to the actual possession or enjoyment of the property have either expired or been turned over to someone other than yourself, a related person, or a related organization. But see Fractional Interest in Tangible Personal Property , earlier, and Tangible personal property put to unrelated use , later.
Related persons include your spouse, children, grandchildren, sibling(s), and parents. Related organizations may include a partnership or corporation in which you have an interest, or an estate or trust with which you have a connection.
Tangible personal property.
This is any property, other than land or buildings, that can be seen or touched. It includes furniture, books, jewelry, paintings, and cars.
Future interest.
This is any interest that is to begin at some future time, regardless of whether it is designated as a future interest under state law.
Example.
You own an antique car that you contribute to a museum. You give up ownership, but retain the right to keep the car in your garage with your personal collection. Because you keep an interest in the property, you can't deduct the contribution. If you turn the car over to the museum in a later year, giving up all rights to its use, possession, and enjoyment, you can take a deduction for the contribution in that later year.
If you contribute inventory (property you sell in the course of your business), the amount you can deduct is the smaller of its FMV on the day you contributed it or its basis. The basis of contributed inventory is any cost incurred for the inventory in an earlier year that you would otherwise include in your opening inventory for the year of the contribution. You must remove the amount of your charitable contribution deduction from your opening inventory. It isn't part of the cost of goods sold.
If the cost of donated inventory isn't included in your opening inventory, the inventory's basis is zero and you can't claim a charitable contribution deduction. Treat the inventory's cost as you would ordinarily treat it under your method of accounting. For example, include the purchase price of inventory bought and donated in the same year in the cost of goods sold for that year.
A special rule applies to certain donations of food inventory. See Food Inventory , later.
If you donate intellectual property to a qualified organization, your deduction is limited to the basis of the property or the FMV of the property, whichever is smaller. Intellectual property means any of the following.
Additional deduction based on income.
You may be able to claim additional charitable contribution deductions in the year of the contribution and years following, based on the income, if any, from the donated property.
The following table shows the percentage of income from the property that you can deduct for each of your tax years ending on or after the date of the contribution. In the table, “tax year 1,” for example, means your first tax year ending on or after the date of the contribution. However, you can take the additional deduction only to the extent the total of the amounts figured using this table is more than the amount of the deduction claimed for the original donation of the property.
After the legal life of the intellectual property ends, or after the 10th anniversary of the donation, whichever is earlier, no additional deduction is allowed.
The additional deductions can't be taken for intellectual property donated to certain private foundations.
| Tax year | Deductible percentage |
| 1 | 100% |
| 2 | 100% |
| 3 | 90% |
| 4 | 80% |
| 5 | 70% |
| 6 | 60% |
| 7 | 50% |
| 8 | 40% |
| 9 | 30% |
| 10 | 20% |
| 11 | 10% |
| 12 | 10% |
Reporting requirements.
You must inform the organization at the time of the donation that you intend to treat the donation as a contribution subject to the provisions just discussed.
The organization is required to file an information return showing the income from the property, with a copy to you. This is done on Form 8899, Notice of Income From Donated Intellectual Property.
This section discusses general guidelines for determining the FMV of various types of donated property. Pub. 561 contains a more complete discussion.
FMV is the price at which property would change hands between a willing buyer and a willing seller, neither having to buy or sell, and both having reasonable knowledge of all the relevant facts.
Used clothing.
The FMV of used clothing and other personal items is usually far less than the price you paid for them. There are no fixed formulas or methods for finding the value of items of clothing.
You should claim as the value the price that buyers of used items actually pay in used clothing stores, such as consignment or thrift shops.
Example.
You donated a coat to a thrift store operated by a place of worship. You paid $300 for the coat 3 years ago. Similar coats in the thrift store sell for $50. The FMV of the coat is $50. Your donation is limited to $50.
Household items.
The FMV of used household items, such as furniture, appliances, and linens, is usually much lower than the price paid when new. These items may have little or no market value because they are in a worn condition, out of style, or no longer useful. For these reasons, formulas (such as using a percentage of the cost to buy a new replacement item) aren't acceptable in determining value.
You should support your valuation with photographs, canceled checks, receipts from your purchase of the items, or other evidence. Magazine or newspaper articles and photographs that describe the items and statements by the recipients of the items are also useful. Don't include any of this evidence with your tax return.
If the property is valuable because it is old or unique, see the discussion under Paintings, Antiques, and Other Objects of Art in Pub. 561.
Article of clothing or household item over $500 not in good used condition.
Form 8283, Section B, must be completed and the Form 8283 attached to the tax return if you are contributing a single article of clothing or household item over $500 that is not in good used condition. See the Form 8283 instructions for more information.
Cars, boats, and airplanes.
If you contribute a car, boat, or airplane to a qualified organization, you must determine its FMV.
Qualified vehicle donation.
You don’t need a written appraisal for a qualified vehicle — such as a car, boat, or airplane — if your deduction for the qualified vehicle is limited to the gross proceeds from its sale and you obtained a contemporaneous written acknowledgment (CWA) , defined later. If you donate a qualified vehicle with a claimed value of more than $500, you can’t claim a deduction unless you attach to Form 8283 a copy of the CWA you received from the donee organization. See Qualified Vehicle Donations in the Instructions for Form 8283.
Except for small, inexpensive boats, the valuation of boats should be based on an appraisal by a marine surveyor or appraiser because the physical condition is critical to the value.
Certain commercial firms and trade organizations publish used car pricing guides, commonly called “blue books,” containing complete dealer sale prices or dealer average prices for recent model years. The guides may be published monthly or seasonally, and for different regions of the country. These guides also provide estimates for adjusting for unusual equipment, unusual mileage, and physical condition. The prices aren't “official” and these publications aren't considered an appraisal of any specific donated property. But they do provide clues for making an appraisal and suggest relative prices for comparison with current sales and offerings in your area.
These publications are sometimes available from public libraries, or from the loan officer at a bank, credit union, or finance company. You can also find used car pricing information on the Internet.
To find the FMV of a donated car, use the price listed in a used car guide for a private party sale, not the dealer retail value. However, the FMV may be less if the car has engine trouble, body damage, high mileage, or any type of excessive wear. The FMV of a donated car is the same as the price listed in a used car guide for a private party sale only if the guide lists a sales price for a car that is the same make, model, and year, sold in the same area, in the same condition, with the same or similar options or accessories, and with the same or similar warranties as the donated car.
Example.
You donate a used car in poor condition to a local high school for use by students studying car repair. A used car guide shows the dealer retail value for this type of car in poor condition is $1,600. However, the guide shows the price for a private party sale of the car is only $750. The FMV of the car is considered to be $750.
Large quantities.
If you contribute a large number of the same item, FMV is the price at which comparable numbers of the item are being sold.
Example.
You purchase 500 copies of a religious book for $1,000. The person who sells them to you says the retail value of these books is $3,000. If you contribute the books to a qualified organization, you can claim a deduction only for the price at which similar numbers of the same books are currently being sold. Your charitable contribution is $1,000, unless you can show that similar numbers of that book were selling at a different price at the time of the contribution.
If you contribute property with an FMV that is less than your basis in it, your deduction is limited to its FMV. You can't claim a deduction for the difference between the property's basis and its FMV.
Your basis in property is generally what you paid for it. If you need more information about basis, see Pub. 551, Basis of Assets. You may want to see Pub. 551 if you contribute property that you:
Common examples of property that decrease in value include clothing, furniture, appliances, and cars.
If you contribute property with an FMV that is more than your basis in it, you may have to reduce the FMV by the amount of appreciation (increase in value) when you figure your deduction.
Your basis in property is generally what you paid for it. If you need more information about basis, see Pub. 551.
Different rules apply to figuring your deduction, depending on whether the property is:
Property is ordinary income property if you would have recognized ordinary income or short-term capital gain had you sold it at FMV on the date it was contributed. Examples of ordinary income property are inventory, works of art created by the donor, manuscripts prepared by the donor, and capital assets (defined later, under Capital Gain Property ) held 1 year or less.
Property used in a trade or business.
Property used in a trade or business is considered ordinary income property to the extent of any gain that would have been treated as ordinary income because of depreciation had the property been sold at its FMV at the time of contribution. See chapter 3 of Pub. 544, Sales and Other Dispositions of Assets, for the kinds of property to which this rule applies.
Amount of deduction.
The amount you can deduct for a contribution of ordinary income property is its FMV minus the amount that would be ordinary income or short-term capital gain if you sold the property for its FMV. Generally, this rule limits the deduction to your basis in the property.
Example.
You donate stock you held for 5 months to your synagogue. The FMV of the stock on the day you donate it is $1,000, but you paid only $800 (your basis). Because the $200 of appreciation would be short-term capital gain if you sold the stock, your deduction is limited to $800 (FMV minus the appreciation).
Exception.
Don't reduce your charitable contribution if you include the ordinary or capital gain income in your gross income in the same year as the contribution. See Ordinary or capital gain income included in gross income under Capital Gain Property next, if you need more information.
Property is capital gain property if you would have recognized long-term capital gain had you sold it at FMV on the date of the contribution. Capital gain property includes capital assets held more than 1 year.
Capital assets.
Capital assets include most items of property you own and use for personal purposes or investment. Examples of capital assets are stocks, bonds, jewelry, coin or stamp collections, and cars or furniture used for personal purposes.
For purposes of figuring your charitable contribution, capital assets also include certain real property and depreciable property used in your trade or business and, generally, held more than 1 year. You may, however, have to treat this property as partly ordinary income property and partly capital gain property. See Property used in a trade or business under Ordinary Income Property , earlier.
Real property.
Real property is land and generally anything built on, growing on, or attached to land.
Depreciable property.
Depreciable property is property used in business or held for the production of income and for which a depreciation deduction is allowed.
For more information about what is a capital asset, see chapter 2 of Pub. 544.
Amount of deduction—General rule.
When figuring your deduction for a contribution of capital gain property, you can generally use the FMV of the property.
Exceptions.
However, in certain situations, you must reduce the FMV by any amount that would have been long-term capital gain if you had sold the property for its FMV. Generally, this means reducing the FMV to the property's cost or other basis. You must do this if:
Contributions to private nonoperating foundations.
The reduced deduction applies to contributions to all private nonoperating foundations other than those qualifying for the 50% limit, discussed later.
However, the reduced deduction doesn't apply to contributions of qualified appreciated stock. Qualified appreciated stock is any stock in a corporation that is capital gain property and for which market quotations are readily available on an established securities market on the day of the contribution. But stock in a corporation doesn't count as qualified appreciated stock to the extent you and your family contributed more than 10% of the value of all the outstanding stock in the corporation.
Tangible personal property put to unrelated use.
Tangible personal property is defined earlier under Future Interest in Tangible Personal Property .
Unrelated use.
The term “unrelated use” means a use unrelated to the exempt purpose or function of the qualified organization. For a governmental unit, it means the use of the contributed property for other than exclusively public purposes.
Example.
If a painting contributed to an educational institution is used by that organization for educational purposes by being placed in its library for display and study by art students, the use isn't an unrelated use. But if the painting is sold and the proceeds are used by the organization for educational purposes, the use is an unrelated use.
Deduction limited.
Your deduction for a contribution of tangible personal property may be limited. See (5) under Exceptions , earlier.
Recapture if no exempt use.
You must recapture part of your charitable contribution deduction by including it in your income if all the following statements are true.
If all the preceding statements are true, include in your income:
Include this amount in your income for the year the qualified organization disposes of the property. Report the recaptured amount on Schedule 1 (Form 1040), line 8z.
Ordinary or capital gain income included in gross income.
You don't reduce your charitable contribution if you include the ordinary or capital gain income in your gross income in the same year as the contribution. This may happen when you transfer installment or discount obligations or when you assign income to a qualified organization. If you contribute an obligation received in a sale of property that is reported under the installment method, see Pub. 537, Installment Sales.
Example.
You donate an installment note to a qualified organization. The note has an FMV of $10,000 and a basis to you of $7,000. As a result of the donation, you have a short-term capital gain of $3,000 ($10,000 − $7,000), which you include in your income for the year. Your charitable contribution is $10,000.
Special rules apply to certain donations of food inventory to a qualified organization. These rules apply if all the following conditions are met.
If all the conditions just described are met, use the following worksheet to figure your deduction.
| Worksheet 1. | |||||
| Donations of Food Inventory | |||||
| See separate Worksheet instructions . | |||||
| (Keep for your records) | |||||
| 1. | Enter FMV of the donated food | _____ | |||
| 2. | Enter basis of the donated food | _____ | |||
| 3. | Subtract line 2 from line 1. If the result is zero or less, stop here. Don't complete the rest of this worksheet. Your charitable contribution deduction for food is the amount on line 1 | _____ | |||
| 4. | Enter one-half of line 3 | _____ | |||
| 5. | Subtract line 4 from line 1 | _____ | |||
| 6. | Multiply line 2 by 2.0 | _____ | |||
| 7. | Subtract line 6 from line 5. If the result is less than zero, enter -0- | _____ | |||
| 8. | Add lines 4 and 7 | _____ | |||
| 9. | Compare line 3 and line 8. Enter the smaller amount | _____ | |||
| 10. | Subtract line 9 from line 1 | _____ | |||
| 11. | Enter 15% of your total net income for the year from all trades or businesses from which food inventory was donated | _____ | |||
| 12. | Compare line 10 and line 11. Enter the smaller amount. This is your charitable contribution deduction for the food | _____ | |||
Worksheet instructions.
When determining the FMV to enter on line 1 of the worksheet, take into account the price at which the same or substantially the same food items (as to both type and quality) were sold by you at the time of the contribution. Don’t reduce this amount because the food wasn’t or couldn’t be sold by reason of your internal standards, lack of market, or similar circumstances. Also, don’t reduce this amount even though you produced the food exclusively for the purpose of transferring the food to a qualified organization.
If you don’t account for inventories under section 471 and you aren’t required to capitalize indirect costs under section 263A, you may elect, solely for the purpose of line 2 of the worksheet, to treat the basis of any apparently wholesome food as being equal to 25% of the FMV of such food.
Enter on line 11 of the worksheet, 15% of your net income for the year from all sole proprietorships, S corporations, or partnerships (or other entity that isn't a C corporation) from which contributions of food inventory were made. Figure net income before any deduction for a charitable contribution of food inventory.
If you made more than one contribution of food inventory, complete a separate worksheet for each contribution. Complete lines 11 and 12 on only one worksheet. On that worksheet, complete line 11. Then compare line 11 and the total of the line 10 amounts on all worksheets and enter the smaller of those amounts on line 12.
If line 11 is smaller than line 10, you can carry over the excess as a qualifying food inventory contribution to the following year. You may be able to include the excess in your charitable contribution deduction for the food in each of the next 5 years in order of time until it is used up, but not beyond that time.
More information.
See Inventory , earlier, for information about determining the basis of donated inventory and the effect on cost of goods sold. For additional details, see section 170(e)(3) of the Internal Revenue Code.
A bargain sale of property is a sale or exchange for less than the property's FMV. A bargain sale to a qualified organization is partly a charitable contribution and partly a sale or exchange.
Part that is a sale or exchange.
The part of the bargain sale that is a sale or exchange may result in a taxable gain. For more information on figuring the amount of any taxable gain, see Bargain sales to charity in chapter 1 of Pub. 544.
Part that is a charitable contribution.
Figure the amount of your charitable contribution in three steps.
Step 1.
Subtract the amount you received for the property from the property's FMV at the time of sale. This gives you the FMV of the contributed part.
Step 2.
Find the adjusted basis of the contributed part. It equals:
Adjusted basis of entire property x fair market value of contributed part ÷ fair market value of entire property
CalculationCalculation
Summary: This is the calculation used to figure the adjusted basis of the contributable amount of property. To calculate: Multiply the Adjusted basis of entire property by (the FMV of contributed part divided by the FMV of entire property).
Step 3.
Determine whether the amount of your charitable contribution is the FMV of the contributed part (which you found in Step 1 ) or the adjusted basis of the contributed part (which you found in Step 2 ). Generally, if the property sold was capital gain property, your charitable contribution is the FMV of the contributed part. If it was ordinary income property, your charitable contribution is the adjusted basis of the contributed part. See Ordinary Income Property and Capital Gain Property , both earlier, for more information.
Example.
You sell ordinary income property with an FMV of $10,000 to a mosque for $2,000. Your basis is $4,000 and your AGI is $20,000. You make no other contributions during the year. The FMV of the contributed part of the property is $8,000 ($10,000 − $2,000). The adjusted basis of the contributed part is $3,200 ($4,000 × ($8,000 ÷ $10,000)). Because the property is ordinary income property, your charitable deduction is limited to the adjusted basis of the contributed part. You can deduct $3,200.
You may be liable for a penalty if you overstate the value or adjusted basis of contributed property.
20% penalty.
The penalty is 20% of the amount by which you underpaid your tax because of the overstatement, if:
40% penalty.
The penalty is 40%, rather than 20%, if:
You can deduct your contributions only in the year you actually make them in cash or other property (or in a later carryover year, as explained under How To Figure Your Deduction When Limits Apply , later). This applies whether you use the cash or an accrual method of accounting.
Time of making contribution.
Usually, you make a contribution at the time of its unconditional delivery.
Checks.
A check you mail to a charity is considered delivered on the date you mail it.
Text message.
Contributions made by text message are deductible in the year you send the text message if the contribution is charged to your telephone or wireless account.
Credit card.
Contributions charged on your bank credit card are deductible in the year you make the charge.
Pay-by-phone account.
Contributions made through a pay-by-phone account are considered delivered on the date the financial institution pays the amount. This date should be shown on the statement the financial institution sends you.
Stock certificate.
A properly endorsed stock certificate is considered delivered on the date of mailing or other delivery to the charity or to the charity's agent. However, if you give a stock certificate to your agent or to the issuing corporation for transfer to the name of the charity, your contribution isn't delivered until the date the stock is transferred on the books of the corporation.
Promissory note.
If you issue and deliver a promissory note to a charity as a contribution, it isn't a contribution until you make the note payments.
Option.
If you grant a charity an option to buy real property at a bargain price, it isn't a contribution until the charity exercises the option.
Borrowed funds.
If you contribute borrowed funds, you can deduct the contribution in the year you deliver the funds to the charity, regardless of when you repay the loan.
Conditional gift.
If your contribution depends on a future act or event to become effective, you can't take a deduction unless there is only a negligible chance the act or event won't take place.
If your contribution would be undone by a later act or event, you can't take a deduction unless there is only a negligible chance the act or event will take place.
Example 1.
You contribute cash to a local school board, which is a political subdivision of a state, to help build a school gym. The school board will refund the money to you if it doesn't collect enough to build the gym. You can't deduct your contribution until there is no chance (or only a negligible chance) of a refund.
Example 2.
You donate land to a city for as long as the city uses it for a public park. The city plans to use the land for a park, and there is no chance (or only a negligible chance) of the land being used for any different purpose. You can deduct your charitable contribution in the year you make the contribution.
. If your total contributions for the year are 20% or less of your AGI, you don't need to read the rest of this section. The remaining limits discussed in this section don't apply to you. .
The amount you can deduct for charitable contributions is generally limited to no more than 60% of your AGI. Your deduction may be further limited to 50%, 30%, or 20% of your AGI, depending on the type of property you give and the type of organization you give it to. Starting with tax year 2022, your deduction for cash contributions is limited to 60% of your AGI minus your deductions for all other contributions. These limits are described in detail in this section.
Your AGI is the amount on Form 1040, line 11.
If your contributions are more than any of the limits that apply, see Carryovers under How To Figure Your Deduction When Limits Apply , later.
Out-of-pocket expenses.
Amounts you spend performing services for a charitable organization may be deductible as a contribution to a qualified organization. If so, your deduction is subject to the limit applicable to donations to that organization. For example, the 30% limit applies to amounts you spend on behalf of a private nonoperating foundation.
For the purpose of applying the deduction limits to your charitable contributions, qualified organizations can be divided into two categories.
First category of qualified organizations (50% limit organizations).
The first category includes only the following types of qualified organizations. (These organizations are also sometimes referred to as “50% limit organizations.”)
You can ask any organization whether it is a 50% limit organization, and most will be able to tell you. Also see How to check whether an organization can receive deductible charitable contributions , earlier.
Second category of qualified organizations.
The second category includes any type of qualified organization that isn’t in the first category.
The limit that applies to a contribution depends on the type of property you give and which category of qualified organization you give it to. The amount of a contribution you can deduct is generally limited to a percentage of your AGI, but may be further reduced if you make contributions that are subject to more than one of the limits discussed in this section.
Your total deduction of charitable contributions can’t exceed your AGI. If your contributions are subject to more than one of the limits, you include all or part of each contribution in a certain order, carrying over any excess to a subsequent year (if allowed). See How To Figure Your Deduction When Limits Apply and Carryovers , later, for more information about ordering and carryovers.
Qualified conservation contributions of farmers and ranchers.
If you are a qualified farmer or rancher, your deduction for a qualified conservation contribution (QCC) is limited to 100% of your AGI minus your deduction for all other charitable contributions. However, if the donated property is used in agriculture or livestock production (or is available for such production), the contribution must be subject to a restriction that the property remain available for such production. If not, the limit is 50%. For more information about applying the 50% limit to a QCC, see Qualified conservation contributions , later, under Limits based on 50% of AGI .
Qualified farmer or rancher.
You are a qualified farmer or rancher if your gross income from the trade or business of farming is more than 50% of your gross income for the year.
If you make cash contributions during the year to an organization described earlier under First category of qualified organizations (50% limit organizations) , your deduction for the cash contributions is 60% of your AGI. See Cash Contributions for what is included in cash contributions.
This 60% limit doesn’t apply to noncash charitable contributions. See Noncash contributions to 50% limit organizations , later, if you contribute something other than cash to a 50% limit organization.
Example 1.
You gave your temple a $200 cash contribution. The limit based on 60% of AGI will apply to the cash contribution to the temple because it is an organization described earlier under First category of qualified organizations (50% limit organizations) and because the contribution was cash.
Example 2.
You donated clothing to your synagogue with an FMV 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 synagogue because it is an organization described earlier under First category of qualified organizations (50% limit organizations) .
“For the use of” contribution exception.
A 30% limit applies to cash contributions that are “for the use of” the qualified organizations instead of “to” the qualified organization. A contribution is “for the use of” a qualified organization when it is held in a legally enforceable trust for the qualified organization or in a similar legal arrangement. See Contributions to the second category of qualified organizations or for the use of any qualified organization , later, under Limits based on 30% of AGI , for more information.
There are two 50% limits that may apply to your contributions.
Noncash contributions to 50% limit organizations.
If you make noncash contributions to organizations described earlier under First category of qualified organizations (50% limit organizations) , your deduction for the noncash contributions is limited to 50% of your AGI minus your cash contributions subject to the 60% limit.
Capital gain property exception.
A 30% limit applies to noncash contributions of capital gain property if you figure your deduction using FMV without reduction for appreciation. See Certain capital gain property contributions to 50% limit organizations , later, under Limits based on 30% of AGI , for more information.
“For the use of” contribution exception.
A 20% or 30% limit applies to noncash contributions that are “for the use of” the qualified organization instead of “to” the qualified organization. A contribution is “for the use of” a qualified organization when it is held in a legally enforceable trust for the qualified organization or in a similar legal arrangement. If the noncash contribution is capital gain property, see Limit based on 20% of AGI , later, for more information; otherwise, see Contributions to the second category of qualified organizations or for the use of any qualified organization , later, under Limits based on 30% of AGI , for more information.
Qualified conservation contributions.
Your deduction for qualified conservation contributions (QCCs) is limited to 50% of your AGI minus your deduction for all other charitable contributions.
. If you are a farmer or rancher, go to Qualified conservation contributions of farmers or ranchers, earlier, under Limits based on 100% of AGI, to see if that limit applies to your QCC instead. .
These are two 30% limits that may apply to your contributions. The 30% limit for capital gain property contributions to a 50% limit organization is separate from the 30% limit that applies to your other contributions. Both are separately reduced by contributions made to a 50% limit organization, but the amount allowed after applying one of the 30% limits doesn't reduce the amount allowed after applying the other 30% limit. However, as a result of applying the separate limits, the total contributions subject to a 30% limit will never be more than 50% of your AGI.
Example.
Your AGI is $50,000. During the year, you gave capital gain property with an FMV of $15,000 to an organization described earlier under First category of qualified organizations (50% limit organizations) . You don’t choose to reduce the property’s FMV by its appreciation in value. You also gave $10,000 cash to a qualified organization that is described earlier under Second category of qualified organizations (meaning it isn’t a 50% limit organization). The $15,000 contribution of capital gain property is subject to one 30% limit and the $10,000 cash contribution is subject to the other 30% limit. The $10,000 cash contribution is fully deductible because the contribution is not more than the smaller of (i) 30% of your AGI ($15,000) and (ii) 50% of your AGI minus all contributions to a 50% limit organization ($25,000−$15,000 = $10,000). The $15,000 is also fully deductible because the contribution is not more than 30% of your AGI minus all contributions to a 50% limit organization subject to the 60% or 50% limit (other than qualified conservation contributions) ($25,000−$10,000 = $15,000). Neither amount is reduced by the other, so the total deductible contribution is $25,000 (which is also not more than 50% of your AGI).
Contributions to the second category of qualified organizations or “for the use of” any qualified organization.
If you make cash contributions or noncash contributions (other than capital gain property) during the year (1) to an organization described earlier under Second category of qualified organizations , or (2) “for the use of” any qualified organization, your deduction for those contributions is limited to 30% of your AGI, or if less, 50% of your AGI minus all your contributions to 50% limit organizations (other than contributions subject to a 100% limit or qualified conservation contributions). For this purpose, contributions to 50% limit organizations include all capital gain property contributions to a 50% limit organization (other than qualified conservation contributions), even those that are subject to the 30% limit, discussed later.
A contribution is “for the use of” a qualified organization when it is held in a legally enforceable trust for the qualified organization or in a similar legal arrangement.
If you make a contribution of capital gain property to an organization other than a 50% limit organization or “for the use of” any qualified organization, see Limit based on 20% of AGI , later.
Student living with you.
Deductible amounts you spend on behalf of a student living with you are subject to this 30% limit. These amounts are considered a contribution for the use of a qualified organization. See Expenses Paid for Student Living With You , earlier, for more information.
Certain capital gain property contributions to 50% limit organizations.
Your noncash contributions of capital gain property to 50% limit organizations is limited to 30% of your AGI minus all your contributions to 50% limit organizations that are subject to the 60% and 50% limits (other than qualified conservation contributions). The limit that applies to capital gain property contributions to 50% limit organizations doesn’t apply to qualified conservation contributions. If you are making a qualified conservation contribution (QCC), see Qualified conservation contributions and Qualified conservation contributions of farmers and ranchers , earlier, for the limits to apply to a QCC.
Election to apply the 50% limit.
You may choose the 50% limit for contributions of capital gain property to organizations described earlier under First category of qualified organizations (50% limit organizations) instead of the 30% limit that would otherwise apply. See Capital gain property election , later, under How To Figure Your Deduction When Limits Apply , for more information about making this election and how to adjust the amount of your contribution.
If you make noncash contributions of capital gain property during the year (1) to an organization described earlier under Second category of qualified organizations , or (2) “for the use of” any qualified organization, your deduction for those contributions is limited to 20% of your AGI or, if less, the smallest of the following.
A contribution is “for the use of” a qualified organization when it is held in a legally enforceable trust for the qualified organization or in a similar legal arrangement.
If your contributions are subject to more than one of the limits discussed earlier, use the following steps to figure the amount of your contributions that you can deduct.
These steps are incorporated into Worksheet 2.
Example.
Your AGI is $50,000. In March, you gave your place of worship $2,000 cash and land with an FMV of $28,000 and a basis of $22,000. You held the land for investment purposes for more than 1 year. You don't make the capital gain property election for this year. See Capital gain property election , later. Therefore, the amount of your charitable contribution for the land would be its FMV of $28,000. You also gave $5,000 cash to a private nonoperating foundation to which the 30% limit applies.
The $2,000 cash donated to the your place of worship is considered first and is fully deductible. Your contribution to the private nonoperating foundation is considered next. Because the total of your cash contribution of $2,000 and your capital gain property of $28,000 to a 50% limit organization ($30,000) is more than $25,000 (50% of $50,000), your contribution to the private nonoperating foundation isn't deductible for the year. It can be carried over to later years. See Carryovers , later. The contribution of land is considered next. Your deduction for the land is limited to $15,000 (30% × $50,000). The unused part of the contribution ($13,000) can be carried over. For this year, your deduction is limited to $17,000 ($2,000 + $15,000).
Capital gain property election.
You may choose the 50% limit for contributions of capital gain property to qualified organizations described earlier under First category of qualified organizations (50% limit organizations) instead of the 30% limit that would otherwise apply. If you make this choice, you must reduce the FMV of the property contributed by the appreciation in value that would have been long-term capital gain if the property had been sold.
This choice applies to all capital gain property contributed to 50% limit organizations during a tax year. It also applies to carryovers of this kind of contribution from an earlier tax year. For details, see Carryover of capital gain property , later.
You must make the choice on your original return or on an amended return filed by the due date for filing the original return.
Example.
In the previous example, if you choose to have the 50% limit apply to the land (the 30% capital gain property) given to your place of worship, you must reduce the FMV of the property by the appreciation in value. Therefore, the amount of your charitable contribution for the land would be its basis to you of $22,000. You add this amount to the $2,000 cash contributed to the place of worship. You can now deduct $1,000 of the amount donated to the private nonoperating foundation because the total of your contributions of cash ($2,000) and capital gain property ($22,000) to 50% limit organizations is $1,000 less than the limit based on 50% of AGI. Your total deduction for the year is $25,000 ($2,000 cash to your place of worship, $22,000 for property donated to your place of worship, and $1,000 cash to the private nonoperating foundation). You can carry over to later years the part of your contribution to the private nonoperating foundation that you couldn't deduct ($4,000).
You can use Worksheet 2 if you made charitable contributions during the year, and one or more of the limits described in this publication under Limits on Deductions apply to you. You can't use this worksheet if you have a carryover of a charitable contribution from an earlier year. If you have a carryover from an earlier year, see Carryovers , later.
The following list gives instructions for completing the worksheet.
Don’t use this worksheet to figure the contributions you can deduct this year if you have a carryover of a charitable contribution from an earlier year.
| Step 1. Enter any qualified conservation contributions (QCCs) made during the year. | |||||
| 1. | If you are a qualified farmer or rancher, enter any QCCs subject to the limit based on 100% of AGI | 1 | |||
| 2. | Enter any QCCs not entered on line 1 | 2 | |||
| Step 2. Enter your other charitable contributions made during the year. | |||||
| 3. | Reserved for future use | ||||
| 4. | Enter your contributions of capital gain property "for the use of" any qualified organization | 4 | |||
| 5. | Enter your other contributions "for the use of" any qualified organization. Don't include any contributions you entered on a previous line | 5 | |||
| 6. | Enter your contributions of capital gain property to qualified organizations that aren't 50% limit organizations. Don't include any contributions you entered on a previous line | 6 | |||
| 7. | Enter your other contributions to qualified organizations that aren't 50% limit organizations. Don't include any contributions you entered on a previous line | 7 | |||
| 8. | Enter your contributions of capital gain property to 50% limit organizations deducted at FMV. Don't include any contributions you entered on a previous line | 8 | |||
| 9. | Enter your noncash contributions to 50% limit organizations other than capital gain property you deducted at FMV. Be sure to include contributions of capital gain property to 50% limit organizations if you reduced the property's FMV. Don't include any contributions you entered on a previous line | 9 | |||
| 10. | Enter your cash contributions to 50% limit organizations. Don't include any contributions you entered on a previous line | 10 | |||
| Step 3. Figure your deduction for the year (if any result is zero or less, enter -0-) | |||||
| 11. | Enter your AGI | 11 | |||
| Cash contributions subject to the limit based on 60% of AGI (If line 10 is zero, enter -0- on lines 12 through 14.) | |||||
| 12. | Multiply line 11 by 0.6 | 12 | |||
| 13. | Deductible amount. Enter the smaller of line 10 or line 12 | 13 | |||
| 14. | Carryover. Subtract line 13 from line 10 | 14 | |||
| Noncash contributions subject to the limit based on 50% of AGI (If line 9 is zero, enter -0- on lines 15 through 18.) | |||||
| 15. | Multiply line 11 by 0.5 | 15 | |||
| 16. | Subtract line 13 from line 15 | 16 | |||
| 17. | Deductible amount. Enter the smaller of line 9 or line 16 | 17 | |||
| 18. | Carryover. Subtract line 17 from line 9 | 18 | |||
| Contributions (other than capital gain property) subject to limit based on 30% of AGI (If lines 5 and 7 are both zero, enter -0- on lines 19 through 25.) | |||||
| 19. | Multiply line 11 by 0.5 | 19 | |||
| 20. | Add lines 8, 9, and 10 | 20 | |||
| 21. | Subtract line 20 from line 19 | 21 | |||
| 22. | Multiply line 11 by 0.3 | 22 | |||
| 23. | Add lines 5 and 7 | 23 | |||
| 24. | Deductible amount. Enter the smallest of line 21, 22, or 23 | 24 | |||
| 25. | Carryover. Subtract line 24 from line 23 | 25 | |||
| Contributions of capital gain property subject to limit based on 30% of AGI (If line 8 is zero, enter -0- on lines 26 through 31.) | |||||
| 26. | Multiply line 11 by 0.5 | 26 | |||
| 27. | Add lines 9 and 10 | 27 | |||
| 28. | Subtract line 27 from line 26 | 28 | |||
| 29. | Multiply line 11 by 0.3 | 29 | |||
| 30. | Deductible amount. Enter the smallest of line 8, 28, or 29 | 30 | |||
| 31. | Carryover. Subtract line 30 from line 8 | 31 | |||
| Contributions subject to the limit based on 20% of AGI (If lines 4 and 6 are both zero, enter -0- on lines 32 through 41.) | |||||
| 32. | Multiply line 11 by 0.5 | 32 | |||
| 33. | Add lines 13, 17, 24, and 30 | 33 | |||
| 34. | Subtract line 33 from line 32 | 34 | |||
| 35. | Multiply line 11 by 0.3 | 35 | |||
| 36. | Subtract line 24 from line 35 | 36 | |||
| 37. | Subtract line 30 from line 35 | 37 | |||
| 38. | Multiply line 11 by 0.2 | 38 | |||
| 39. | Add lines 4 and 6 | 39 | |||
| 40. | Deductible amount. Enter the smallest of line 34, 36, 37, 38, or 39 | 40 | |||
| 41. | Carryover. Subtract line 40 from line 39 | 41 | |||
| QCCs subject to limit based on 50% of AGI (If line 2 is zero, enter -0- on lines 42 through 46.) | |||||
| 42. | Multiply line 11 by 0.5 | 42 | |||
| 43. | Add lines 13, 17, 24, 30, and 40 | 43 | |||
| 44. | Subtract line 43 from line 42 | 44 | |||
| 45. | Deductible amount. Enter the smaller of line 2 or line 44 | 45 | |||
| 46. | Carryover. Subtract line 45 from line 2 | 46 | |||
| Note: Worksheet 2 continues on the next page. | |||||
| QCCs subject to limit based on 100% of AGI (If line 1 is zero, enter -0- on lines 47 through 51.) | ||
| 47. | Enter the amount from line 11 | 47 |
| 48. | Add lines 13, 17, 24, 30, 40, and 45 | 48 |
| 49. | Subtract line 48 from line 47 | 49 |
| 50. | Deductible amount. Enter the smaller of line 1 or line 49 | 50 |
| 51. | Carryover. Subtract line 50 from line 1 | 51 |
| Deduction for the year | ||
| 52. | Add lines 13, 17, 24, 30, 40, 45, and 50. Enter the total here and include the deductible amounts on Schedule A (Form 1040), line 11 or line 12, whichever is appropriate. | 52 |
| Note. Any amounts in the carryover column are not deductible this year but can be carried over to next year. See Carryovers , later, for more information about how you will use them next year. | ||