Contributions carryover expiration

[ibmman]

Hello,

I have given a good amount of charity from 1998-2002. Unfortunately, I am going through a 2004-2006, IRS audit for this reason. The auditor is saying that the charity which was given and carried over has expired in 2005 due to the 5-year limitation on contributions carryover. Yet, my accountant (old one) apparantly didnt do this.

Is there such a thing as a 5-year carryover? (i know very ignorant question, I am sorry).

Any suggestions on what I should do?

[BOB W]

Hello,

I have given a good amount of charity from 1998-2002. Unfortunately, I am going through a 2004-2006, IRS audit for this reason. The auditor is saying that the charity which was given and carried over has expired in 2005 due to the 5-year limitation on contributions carryover. Yet, my accountant (old one) apparantly didnt do this.

Is there such a thing as a 5-year carryover? (i know very ignorant question, I am sorry).

Any suggestions on what I should do?

Carryovers

You can carry over your contributions that you are not able to deduct in the current year because they exceed your adjusted-gross-income limits. You can deduct the excess in each of the next 5 years until it is used up, but not beyond that time. Your total contributions deduction for the year to which you carry your contributions cannot exceed 50% of your adjusted gross income for that year.

[veritas]

What do you do

for a living ibmman?

[JCH]

Certain types of contributions are also limited to 30% of your AGI.

[ibmman]

charity carryover

Carryovers

You can carry over your contributions that you are not able to deduct in the current year because they exceed your adjusted-gross-income limits. You can deduct the excess in each of the next 5 years until it is used up, but not beyond that time. Your total contributions deduction for the year to which you carry your contributions cannot exceed 50% of your adjusted gross income for that year.

I see. So basically, the charity I gave in 2001, if I do not use it up by 2006, then in 2007 it is non-existent.

Thank you very much for your help!

[ibmman]

for a living

for a living ibmman?

i am a software developer... (naturally from my name )

[Roland Slugg]

Fifo

When there are charitable contribution carryovers, they are used up in the order paid ... i.e. first-in, first-out. It's a good idea to keep a running worksheet of these.

[Davc]

When there are charitable contribution carryovers, they are used up in the order paid ... i.e. first-in, first-out.

But only after using current year contributions.