U.S. Master Tax Guide (2011), 1058. Contributions by Individuals Generally, contributions to charitable organizations are deductible, subject to certain limits. The charitable deduction for any one tax year is limited to a percentage of the individual taxpayer's contribution base, which is the taxpayer's adjusted gross income (AGI), computed without regard to any net operating loss carryback ( Code Sec. 170(b) (1)(G)). 15-4 The percentage limitation is determined by two factors: the type of organization receiving the donation and the type of property donated ( Code Sec. 170(b)(1)). 155 Any amount in excess of the percentage limitation for the tax year may be carried forward for a period of five years (¶1060) ( Code Sec. 170(d)). 156 When spouses file a joint return, the percentage limitation depends on their aggregate contribution base ( Reg. §1.170A-8(a)). 1.51 A limit also applies to the amount of a charitable deduction allowed for gifts of appreciated property ( ¶1062), and is imposed before applying the percentage limitation ( Code Sec. 170(e); Reg. §1.170A-4).15-15 Contributions are reported on Schedule A of Form 1040. See ¶1061 for discussion of what contributions are deductible. Except for the carryover rule at ¶1060, a contribution is generally deductible only in the year of payment ( Reg. §1.170A-1(a)). 152 However, contributions charged to a bank credit card are deductible in the year charged even though paid in a later year ( Rev. Rul. 78-38). 160 Taxpayers who are recognized by the Alaska Eskimo Whaling Commission as whaling captains can claim a charitable contribution deduction of up to $10,000 per tax year for reasonable and necessary expenses paid in carrying out sanctioned Alaskan subsistence whale hunting activities ( Code Sec. 170(n)). 161 IRA Distributions. In 2010 and 2011 (as in 2006 through 2009), individuals age 70 % or older can distribute up to $100,000 tax-free from their individual retirement accounts (IRAs) to certain charitable organizations without including the distribution in gross income ( Code Sec. 408isa(8), as amended by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (E. 111-312)). To qualify, the distribution must be made directly by the trustee to a 50-percent organization ( ¶1059), but not to a supporting organization or a donor advised fund ¶1061), and the entire distribution must otherwise be deductible under Code Sec. 170 (disregarding the percentage limitations) even though the individual cannot claim a charitable deduction for the donation. The distribution can be delivered to the charity by the IRA owner provided that the check from the IRA is payable to the charity ( Notice 2007-7). 16 2 See ¶2153G for a special rule that permits a qualified charitable distribution made in January 2011 to be treated as having been made on December 31, 2010. Footnotes 154 FED ¶11,600 INDIV: 51,250 PTE §7,501, PTE §7,565.05 155 FED ¶11,600 INDIV: 51,256 PTE §7,501 FED ¶11,600 INDIV: 51,262 PTE §7,570.05 157 FED¶11,661 INDIV: 51,252 PTE §7,565.05 158 FED ¶11,600, FED ¶11,632 INDIV: 51,200 PTE §7,525.05, PTE §7,565.05 159 FED ¶11,615 INDIV: 51,402 PTE §7,505.10 160 FED¶11,620.691 INDIV: 51,416 PTE §7,505.10 161 FED ¶11,600 INDIV: 51,052.55 PTE §7,540 /62 FED¶18,902, FED ¶18,922.745 RETIRE: 66,502, RETIRE: 66,758 PTE §25,450.35 O2011 Wolters Kluwer. All rights reserved. I of I 7/28/2011 8:00 AM EFTA00598317