Page 17

4. Contributions of capital gain property sub- ject to the limit based on 30% of AGI. De- duct the contributions that don’t exceed the smaller of: a. 30% of your AGI, or b. 50% of your AGI minus your contribu- tions subject to the limits based on 60% or 50% of AGI (other than quali- fied conservation contributions). 5. Contributions of capital gain property sub- ject to the limit based on 20% of AGI. De- duct the contributions that don’t exceed the smaller of: a. 20% of your AGI, b. 30% of your AGI minus your contribu- tions of capital gain property subject to the limit based on 30% of AGI, c. 30% of your AGI minus your other contributions subject to the limit based on 30% of AGI, or d. 50% of your AGI minus your contribu- tions subject to the limits based on 60%, 50%, and 30% of AGI (other than qualified conservation contribu- tions). 6. Qualified conservation contributions sub- ject to the limit based on 50% of AGI. De- duct the contributions that don’t exceed 50% of your AGI minus any deductible contributions figured in (1) through (5). 7. Qualified conservation contributions sub- ject to the limit based on 100% of AGI. De- duct the contributions that don't exceed 100% of your AGI minus any deductible contributions figured in (1) through (6). 8. Qualified cash contributions for 2020 plus qualified contributions for relief efforts in a qualified disaster area subject to the limit based on 100% of AGI. Deduct the contri- butions that don't exceed 100% of your AGI minus all your other deductible contri- butions. These steps are incorporated into Work- sheet 2. Example. Your AGI is $50,000. In March, you gave your church $2,000 cash that you elected not to treat as Qualified cash contribu- tions for 2020, and land with a fair market value 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 fair market value of $28,000. You also gave $5,000 cash to a private nonoperating founda- tion to which the 30% limit applies. The $2,000 cash donated to the church is considered first and is fully deductible. Your contribution to the private nonoperating founda- tion is considered next. Because the total of your cash contribution of $2,000 and your capi- tal gain property of $28,000 to a 50% limit or- ganization ($30,000) is more than $25,000 (50% of $50,000), your contribution to the pri- vate 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 un- used 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 descri- bed earlier under First category of qualified or- ganizations (50% limit organizations) instead of the 30% limit that would otherwise apply. If you make this choice, you must reduce the fair mar- ket value of the property contributed by the ap- preciation in value that would have been long-term capital gain if the property had been sold. This choice applies to all capital gain prop- erty contributed to 50% limit organizations dur- ing 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 prop- erty, 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 church, you must reduce the fair market value of the property by the appreciation in value. Therefore, the amount of your charitable contri- bution for the land would be its basis to you of $22,000. You add this amount to the $2,000 cash contributed to the church. You can now deduct $1,000 of the amount donated to the pri- vate nonoperating foundation because the total of your contributions of cash ($2,000) and capi- tal gain property ($22,000) to 50% limit organi- zations 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 church, $22,000 for property donated to your church, 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). Instructions for Worksheet 2 You can use Worksheet 2 if you made charita- ble 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 com- pleting the worksheet. • The terms used in the worksheet are ex- plained earlier in this publication. • If the result on any line is less than zero, enter zero. • For contributions of property, enter the property's fair market value unless you elected (or were required) to reduce the fair market value as explained under Giv- ing Property That Has Increased in Value. In that case, enter the reduced amount. Publication 526 (2020) Page 17