When taxpayers donate cash and capital gain property to a public charity,the AGI percentage limitation is applied in the following order:

Question

Quizplus · Accepted Answer

The correct sequence of applying AGI percentage limitations to donations of cash and capital gain property to a public charity is as follows:
- First, a 50 percent of AGI limitation is applied to the cash contribution.
- Then, the fair market value of the capital gain property donation is subject to the lesser of a 30 percent of AGI limitation or a 50 percent of AGI limitation after subtracting the cash contributions. In other words, the total of all capital gain property donations cannot exceed 30 percent of AGI (or 50 percent if no cash donations were made) after subtracting any cash contributions already counted towards the 50 percent limit.
Therefore, choice D is the best answer.

When Taxpayers Donate Cash and Capital Gain Property to a Public