Capital assets donated to a public charity that would result in long-term capital gain if sold are subject to the 30%-of- AGI ceiling limitation on charitable contributions for individuals.

Question

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When a capital asset is donated to a public charity, it is subject to the 30% of AGI ceiling limitation on charitable contributions for individuals. This applies to the fair market value of the asset at the time of donation and the donor may be able to take a deduction for the full fair market value. If the asset would result in a long-term capital gain if sold, the donor may also be able to avoid paying capital gains tax on the appreciation.

Capital Assets Donated to a Public Charity That Would Result