For purposes of applying subdivision (i)(a) of this subparagraph, the amount of charitable contributions of 30-percent capital gain property actually made in a taxable year succeeding the contribution year shall be determined by first applying the 30-percent limitation of section 170(b)(1)(D)(i) and paragraph (d) of § 1.170A-8 . If a taxpayer, in any one of the 4 taxable years succeeding a contribution year, elects under section 144 to take the standard deduction instead of itemizing the deductions allowable in computing taxable income, there shall be treated as paid (but not allowable as a deduction) in such standard deduction year the lesser of the amounts determined under subdivisions (i) to (iii), inclusive, of this subparagraph. The provisions of this subparagraph may be illustrated by the following examples:
1970 excess contributions | $2,000 | |
50 percent of B's contribution base for 1971 | 15,000 | |
Less: | ||
Contributions actually made in 1971 to section 170(b)(1)(A) organizations | $13,500 | |
Contributions made to section 170(b)(1)(A) organizations in taxable years prior to 1970 treated as having been paid in 1971 | 0 | 13,500 |
Balance | 1,500 | |
Amount of 1970 excess treated as paid in 1971-the lesser of $2,000 (1970 excess contributions) or $1,500 (excess of 50 percent of contribution base for 1971 ($15,000) over the sum of the section 170(b)(1)(A) contributions actually made in 1971 ($13,500) and the section 170(b)(1)(A) contributions made in years prior to 1970 treated as having been paid in 1971 ($0)) | 1,500 |
If the excess contributions made by B in 1970 had been $1,000 instead of $2,000, then, for purposes of this example, the amount of the 1970 excess treated as paid in 1971 would be $1,000 rather than $1,500.
1970 | 1971 | 1972 | 1973 | 1974 | |
Contribution base | $10,000 | $7,000 | $15,000 | $10,000 | $9,000 |
Contributions of cash to section 170(b)(1)(A) organizations (no other contributions) | 6,000 | 4,400 | 8,000 | 3,000 | 1,500 |
Allowable charitable contributions deductions computed without regard to carryover of contributions | 5,000 | 3,500 | 7,500 | 3,000 | 1,500 |
Excess contributions for taxable year to be treated as paid in 5 succeeding taxable years | 1,000 | 900 | 500 | 0 | 0 |
Since C's contributions in 1973 and 1974 to section 170(b)(1)(A) organizations are less than 50 percent of his contribution base for such years, the excess contributions for 1970, 1971, and 1972 are treated as having been paid to section 170(b)(1)(A) organizations in 1973 and 1974 as follows:
1973
Contribution year | Total excess | Less: Amount treated as paid in year prior to 1973 | Available charitable contributions carryovers |
1970 | $1,000 | 0 | $1,000 |
1971 | 900 | 0 | 900 |
1972 | 500 | 0 | 500 |
Total | 2,400 | ||
50 percent of B's contribution base for 1973 | $5,000 | ||
Less: Charitable contributions made in 1973 to section 170(b)(1)(A) organizations | 3,000 | ||
2,000 | |||
Amount of excess contributions treated as paid in 1973-lesser of $2,400 (available carryovers to 1973) or $2,000 (excess of 50 percent of contribution base ($5,000) over contributions actually made in 1973 to section 170(b)(1)(A) organizations ($3,000)) | 2,000 |
1974
Contribution year | Total excess | Less: Amount treated as paid in year prior to 1974 | Available charitable contributions carryovers |
1970 | $1,000 | $1,000 | |
1971 | 900 | 900 | |
1972 | 500 | 100 | $40 |
1973 | 0 | 0 | |
Total | 400 | ||
50 percent of B's contribution base for 1974 | $4,500 | ||
Less: Charitable contributions made in 1974 to section 170(b)(1)(A) organizations | 1,500 | ||
3,000 | |||
Amount of excess contributions treated as paid in 1974-the lesser of $400 (available carryovers to 1974) or $3,000 (excess of 50 percent of contribution base ($4,500) over contributions actually made in 1974 to section 170(b)(1)(A) organizations ($1,500)) | 400 |
For purposes of applying subdivisions (i) and (ii) of this subparagraph, the amount of charitable contributions of 30-percent capital gain property actually made in a taxable year succeeding the contribution year shall be determined by first applying the 30-percent limitation of section 170(b)(1)(D)(i) and paragraph (d) of § 1.170A-8 . If a taxpayer, in any one of the four taxable years succeeding a contribution year, elects under section 144 to take the standard deduction instead of itemizing the deductions allowable in computing taxable income, there shall be treated as paid (but not allowable as a deduction) in the standard deduction year the least of the amounts determined under subdivisions (i) to (iv), inclusive, of this subparagraph. The provisions of this subparagraph may be illustrated by the following example:
Example. Assume the following factual situation for C who itemizes his deductions in computing taxable income for each of the years set forth in the example:
1970 | 1971 | 1972 | 1973 | 1974 | |
Contribution base | $10,000 | $15,000 | $20,000 | $15,000 | $33,000 |
Contributions of cash to section 170(b)(1)(A) organizations | 2,000 | 8,500 | 0 | 14,000 | 700 |
Contributions of 30-percent capital gain property to section 170(b)(1)(A) organizations | 5,000 | 0 | 7,800 | 0 | 6,400 |
Allowable charitable contributions deductions (computed without regard to carryover of contributions) subject to limitations of: | |||||
50 percent | 2,000 | 7,500 | 0 | 7,500 | 700 |
30 percent | 3,000 | 0 | 6,000 | 0 | 6,400 |
Total | 5,000 | 7,500 | 6,000 | 7,500 | 7,100 |
Excess of contributions for taxable year to be treated as paid in 5 succeeding taxable years: | |||||
Carryover of contributions of property other than 30-percent capital gain property | 0 | 1,000 | 0 | 6,500 | |
Carryover of contributions of 30-percent capital gain property. | 2,000 | 0 | 1,800 | 0 |
C's excess contributions for 1970, 1971, 1972, and 1973 which are treated as having been paid to section 170(b)(1)(A) organizations in 1972, 1973, and 1974 are indicated below. The portion of the excess charitable contribution for 1972 of 30-percent capital gain property which is not treated as paid in 1974 ($1,800-$900) is available as a carryover to 1975.
1971
Contribution | Total excess | Less: Amount treated as paid in years prior to 1971 | Available charitable contributions carryovers | ||
50% | 30% | 50% | 30% | ||
1970 | 0 | $2,000 | 0 | 0 | $2,000 |
50 percent of C's contribution base for 1971 | $7,500 | ||||
30 percent of C's contribution base for 1971 | 4,500 | ||||
Less: Charitable contributions actually made in 1971 to section 170(b)(1)(A) organizations ($8,500, but not to exceed 50% of contribution base) | 7,500 | 0 | |||
Excess | 0 | 4,500 | |||
The amount of excess contributions for 1970 of 30-percent capital gain property which is treated as paid in 1971 is the least of: | |||||
(i) Available carryover from 1970 to 1971 of contributions of 30-percent capital gain property | 2,000 | ||||
(ii) Excess of 50 percent of contribution base for 1971 ($7,500) over sum of contributions actually made in 1971 to section 170(b)(1)(A) organizations ($7,500) | 0 | ||||
(iii) Excess of 30 percent of contribution base for 1971 ($4,500) over contributions of 30 percent capital gain property actually made in 1971 to section 170(b)(1)(A) organizations ($0) | 4,500 | ||||
Amount treated as paid | 0 |
1972
Contribution year | Total excess | Less: Amount treated as paid in years prior to 1972 | Available charitable contributions carryovers | ||
50% | 30% | 50% | 30% | ||
1970 | 0 | $2,000 | 0 | 0 | $2,000 |
1971 | $1,000 | 0 | 0 | $1,000 | 0 |
1,000 | 2,000 | ||||
50 percent of C's contribution base for 1972 | 10,000 | ||||
30 percent of C's contribution base for 1972 | 6,000 | ||||
Less: Charitable contributions actually made in 1972 to section 170(b)(1)(A) organizations ($7,800, but not to exceed 30% of contribution base) | 0 | 6,000 | |||
Excess | 10,000 | 0 | |||
(1) The amount of excess contributions for 1971 of property other than 30-percent capital gain property which is treated as paid in 1972 is the lesser of: | |||||
(i) Available carryover from 1971 to 1972 of contributions of property other than 30-percent capital gain property | 1,000 | ||||
(ii) Excess of 50 percent of contribution base for 1972 ($10,000) over contributions actually made in 1972 to section 170(b)(1)(A) organizations ($6,000) | 4,000 | ||||
Amount treated as paid | 1,000 | ||||
(2) The amount of excess contributions for 1970 of 30-percent capital gain property which is treated as paid in 1972 is the least of: | |||||
(i) Available carryover from 1970 to 1972 of contributions of 30-percent capital gain property | 2,000 | ||||
(ii) Excess of 50 percent of contribution base for 1972 ($10,000) over sum of contributions actually made in 1972 to section 170(b)(1)(A) organizations ($6,000) and excess contributions for 1971 treated under item (1) above as paid in 1972 ($1,000) | 3,000 | ||||
(iii) Excess of 30 percent of contribution base for 1972 ($6,000) over contributions of 30-percent capital gain property actually made in 1972 to section 170(b)(1)(A) organizations ($6,000) | 0 | ||||
Amount treated as paid | 0 |
1973
Contribution year | Total excess | Less: Amount treated as paid in years prior to 1973 | Available charitable contributions carryovers | ||
50% | 30% | 50% | 30% | ||
1970 | 0 | $2,000 | 0 | 0 | $2,000 |
1971 | $1,000 | 0 | $1,000 | 0 | 0 |
1972 | 0 | 1,800 | 0 | 0 | 1,800 |
0 | 3,800 | ||||
50 percent of C's contribution base for 1973 | $7,500 | ||||
30 percent of C's contribution base for 1973 | 4,500 | ||||
Less: Charitable contributions actually made in 1973 to section 170(b)(1)(A) organizations ($14,000, but not to exceed 50% of contribution base) | 7,500 | 0 | |||
Excess | 0 | 4,500 | |||
(1) The amount of excess contributions for 1970 of 30-percent capital gain property which is treated as paid in 1973 is the least of: | |||||
(i) Available carryover from 1970 to 1973 of contributions of 30-percent capital gain property | 2,000 | ||||
(ii) Excess of 50 percent of contribution base for 1973 ($7,500) over contributions actually made in 1973 to section 170(b)(1)(A) organizations ($7,500) | 0 | ||||
(iii) Excess of 30 percent of contribution base for 1973 ($4,500) over contributions of 30-percent capital gain property actually made in 1973 to section 170(b)(1)(A) organizations ($0) | 4,500 | ||||
Amount treated as paid | 0 | ||||
(2) The amount of excess contributions for 1972 of 30-percent capital gain property which is treated as paid in 1973 is the least of: | |||||
(i) Available carryover from 1972 to 1973 of contributions of 30-percent capital gain property | 1,800 | ||||
(ii) Excess of 50 percent of contribution base for 1973 ($7,500) over contributions actually made in 1973 to section 170(b)(1)(A) organizations ($7,500) | 0 | ||||
(iii) Excess of 30 percent of contribution base for 1973 ($4,500) over sum of contributions of 30-percent capital gain property actually made in 1973 to section 170(b)(1)(A) organizations ($0) and excess contributions for 1970 treated under item (1) above as paid in 1973 ($0) | 4,500 | ||||
Amount treated as paid | 0 |
1974
Contribution year | Total excess | Less: Amount treated as paid in years prior to 1974 | Available charitable contributions carryovers | ||
50% | 30% | 50% | 30% | ||
1970 | 0 | $2,000 | 0 | 0 | $2,000 |
1971 | $1,000 | 0 | $1,000 | 0 | 0 |
1972 | 0 | 1,800 | 0 | 0 | 1,800 |
1973 | 6,500 | 0 | 0 | $6,500 | 0 |
6,500 | 3,800 | ||||
50 percent of C's contribution base for 1974 | 16,500 | ||||
30 percent of C's contribution base for 1974 | 9,900 | ||||
Less: Charitable contributions actually made in 1974 to section 170(b)(1)(A) organizations | 700 | 6,400 | |||
Excess | 15,800 | 3,500 | |||
(1) The amount of excess contributions for 1973 of property other than 30-percent capital gain property which is treated as paid in 1974 is the lesser of: | |||||
(i) Available carryover from 1973 to 1974 of contributions of property other than 30-percent capital gain property | 6,500 | ||||
(ii) Excess of 50 percent of contribution base for 1974 ($16,500) over contributions actually made in 1974 to section 170(b)(1)(A) organizations ($7,100) | 9,400 | ||||
Amount treated as paid | 6,500 | ||||
(2) The amount of excess contributions for 1970 of 30-percent capital gain property which is treated as paid in 1974 is the least of: | |||||
(i) Available carryover from 1970 to 1974 of contributions of 30-percent capital gain property | $2,000 | ||||
(ii) Excess of 50 percent of contribution base for 1974 ($16,500) over sum of contributions actually made in 1974 to section 170(b)(1)(A) organizations ($7,100) and excess contributions for 1973 of property other than 30-percent capital gain property treated under item (1) above as paid in 1974 ($6,500) | 2,900 | ||||
(iii) Excess of 30 percent of contribution base for 1974 ($9,900) over contributions of 30-percent capital gain property actually made in 1974 to section 170(b)(1)(A) organizations ($6,400) | 3,500 | ||||
Amount treated as paid | $2,000 | ||||
(3) The amount of excess contributions for 1972 of 30-percent capital gain property which is treated as paid in 1974 is the least of: | |||||
(i) Available carryover from 1972 to 1974 of contributions of 30-percent capital gain property | 1,800 | ||||
(ii) Excess of 50 percent of contribution base for 1974 ($16,500) over sum of contributions actually made in 1974 to section 170(b)(1)(A) organizations ($7,100) and excess contributions for 1973 and 1970 treated under items (1) and (2) above as paid in 1974 ($8,500) | 900 | ||||
(iii) Excess of 30 percent of contribution base for 1974 ($9,900) over sum of contributions of 30-percent capital gain property actually made in 1974 to section 170(b)(1)(A) organizations ($6,400) and excess contributions for 1970 of 30-percent capital gain property treated under item (2) above as paid in 1974 ($2,000) | 1,500 | ||||
Amount treated as paid | 900 |
Example.
1970
H | W | Joint return | |
Contribution base | $50,000 | $40,000 | $90,000 |
Contributions of cash to section 170(b)(1)(A) organizations (no other contributions) | 37,000 | 28,000 | 65,000 |
Allowable charitable contributions deductions | 25,000 | 20,000 | 45,000 |
Excess contributions for taxable year to be treated as paid in 5 succeeding taxable years | 12,000 | 8,000 | 20,000 |
$12,000 (excess charitable contributions made by H (based on separate return computation) in 1970)/$20,000 (total excess charitable contributions made by H and W (based on separate return computation) in 1970) * $10,000 = $6,000
$8,000 (excess charitable contributions made by W (based on separate return computation) in 1970)/$20,000 (total excess charitable contributions made by H and W (based on separate return computation) in 1970) * $10,000 = $4,000
H | W | |
Available charitable contribution carryover (see computations in (b)) | $6,000 | $4,000 |
50 percent of contribution base | 35,000 | 25,000 |
Contributions of cash made in 1973 to section 170(b)(1)(A) organizations (no other contributions) | 14,000 | 10,000 |
21,000 | 15,000 | |
Amount of excess contributions treated as paid in 1973: The lesser of $6,000 (available carryover of H to 1973) or $21,000 (excess of 50 percent of contribution base ($35,000) over contributions actually made in 1973 to section 170(b)(1)(A) organizations ($14,000)) | $6,000 | |
The lesser of $4,000 (available carryover of W to 1973) or $15,000 (excess of 50 percent of contribution base ($25,000) over contributions actually made in 1973 to section 170(b)(1)(A) organizations ($10,000)) | $4,000 |
Example. Assume the same facts as in the example in subdivision (i) of this subparagraph except that H dies in 1972 and W files a separate return for 1973. W made a joint return for herself and H for 1972. In the example, the unused excess charitable contribution as of January 1, 1973, was $10,000, $6,000 of which was allocable to H and $4,000 to W. No portion of the $6,000 allocable to H may be treated as paid by W or any other person in 1973 or any subsequent year.
26 C.F.R. §1.170A-10