Message Font: Serif | Sans-Serif
No. of Recommendations: 0
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.


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.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.