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Author: Wradical Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121061  
Subject: Re: Buffett's Tax Bill Date: 10/13/2011 3:28 PM
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They are capped, sort of. One year I got a windfall and gave more than half my adjusted gross income to few 501(c)(3) charities. I could deduct only 1/2 my adjusted gross income, but I could carry the balance over to the next year. The next year, I could deduct most of that, but carried the rest until the third year. If I remember correctly, these can be carried over until they are all used up.

Mr. Buffett could carry the balance over to the next year (and probably does), but I do not see that doing him any good because he will be making comparable charitable gifts each year. He can probably deduct $3000 of it each year from ordinary income, for all the good that would do him.

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The carryover period for contributions is limited to 5 yrs.
The $3,000 limit is for capital losses; the limit for contributions is 50% of AGI, as you mentioned, but further limited to only 30% for stocks and other capital gain property.

I don't think Buffett believes in capital losses.

Bill
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