Charity in 2020

Technical topics regarding tax preparation.
#1
PHall  
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San Francisco East Bay, CA
In 2020 Client made a very large charitable gift. There was also an $11k carryforward charitable donation from 2019. I deducted 100% of clients AGI. IRS said they can not process the return until taxpayer answers this question
"In you included qualified disaster relief contributions in the total identify the qualified contributions amount in your response."
Why are they asking this?
 

#2
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22-Apr-2014 1:34pm
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North Carolina
What type of client is it, an individual or a corporation (or something else)?
 

#3
Nilodop  
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Because they want to know whether your 100% limit is under qualified disaster relief for a 2018/2019 disaster vs a qualified cash contribution under the special 2020 rule.
 

#4
PHall  
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224
Joined:
18-Sep-2014 10:12am
Location:
San Francisco East Bay, CA
Thank you! But if we answer no disaster contributions will the carryover be disallowed? Or what other consequences?
 

#5
Nilodop  
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Pennsylvania
No, I think the way it works is you take the $11k carryover contributions from 2019 first and that reduces the amount of qualified contributions eligible for the 100% limit. Then the rest of the qualified contributions carryover to 2021 but subject to the 60% limitation in tht year.

But check me on that.
 


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