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Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
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Experience:  Extensive Experience with Tax, Financial & Estate Issues
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I own a corporation that files as an S Corporation. I would

Customer Question

I own a corporation that files as an S Corporation. For 2015 I would like to donate,
out of my inventory, artifacts to a qualified 501c3 charity group. My question is: what are my dollar limitations and can an amount be carried backwards and forward. If so, how much and for how long.?
Also, as an individual what is the limit on donations against AGI?
Submitted: 9 months ago.
Category: Tax
Expert:  Stephen G. replied 9 months ago.

Well, first of all as an "S Corp" any charitable contributions are passed through separately on your K-1 and deducted personally as an itemized deduction.

Therefore the limitations are based upon your personal AGI.

The percentage limitation is based upon the type of charity that you are contributing to & what they are going to do with whatever you are going to give them (other than cash).

So you mention "artifacts", which will most likely require an independent appraisal to establish value.

It is likely that you are dealing with a 501c(3) organization so the question becomes are they going to sell the artifacts or are the artifacts going to a museum or similar organization that will use them in their collection which is open to the public.

Generally, the limitations that will apply would be 30% or 50% of your AGI.

Possibly, the issue of "stock in trade" (ie. inventory) would need to be evaluated if there has been any appreciation in the artifacts since you acquired them; the method that you acquired them could also be a factor if it was other than by a purchase with money or money's worth.

All that said, can you give me more specifics about the donation you are considering based upon the considerations identified above?

Expert:  Stephen G. replied 9 months ago.

Just checking in...................

I see that you have had a chance to review my response, but I don't see any follow-up questions?

If you do not have any additional questions, I would appreciate it if you would take a minute to rate my response as that is the only way we receive credit for our work.

Thanks very much,

Steve G.

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