QCD
Received this question from a tax preparer.
If a taxpayer made QCD ( the QCD is < $100000) and regular contributions which in total exceeded 60% of AGI, or if only made QCD that were greater than the 60% limitation, would the excess amount not be currently deductible and subject to the carryover rules.
Replied that the QCD was an exclusion from income and the charitable deduction limitation does not apply. Is that correct.
Thanks,
Permalink Submitted by Alan - IRA critic on Mon, 2024-02-19 18:37
Yes, that is correct. The allowed QCD amount is entirely separate from any itemized deductions limits. However, if the QCD limit is exceeded, the amount donated in excess of the QCD could be itemized and subject to the itemized deduction limits.