What is the limit for charitable contributions for long-term capital gain property for individuals?

The limit for charitable contributions of long-term capital gain property for individuals is indeed 30% of adjusted gross income (AGI). This rule applies to property that has been held for more than one year and has appreciated in value, allowing the donor to deduct the fair market value of the property at the time of donation.

When individuals contribute such assets to qualified charitable organizations, the IRS encourages charitable giving but places a cap on the deduction to prevent excessive tax avoidance strategies. The 30% limit specifically applies to gifts of capital gain property, while cash contributions and certain other property types can have different deduction limits.

Understanding this limitation is crucial for tax planning, as contributing long-term capital gain property not only offers a charitable deduction based on fair market value but also avoids capital gains taxes that would have arisen had the property been sold. Thus, knowing the deduction limit helps taxpayers strategize their charitable giving in a tax-efficient manner.