Which of the following is NOT an itemized deduction limitation associated with GIMIC?

The correct answer is charitable contributions, which are not subject to itemized deduction limitations associated with the GIMIC (which stands for the limitations imposed on certain itemized deductions based on the taxpayer's adjusted gross income).

Charitable contributions have a distinct set of rules regarding their deductibility. They are generally limited to a percentage of the taxpayer’s adjusted gross income, depending on the type of property donated and the nature of the charitable organization. For instance, contributions to public charities are typically limited to 60% of AGI. However, this limitation works separately from the GIMIC thresholds and the phase-out of other itemized deductions.

On the other hand, gambling losses, investment interest expense, and medical expenses are subject to GIMIC restrictions. Gambling losses can only be deducted to the extent of gambling winnings, investment interest expense is only deductible to the extent of net investment income, and medical expenses must exceed a certain percentage of AGI (7.5% or 10% depending on the tax year) before they can be deducted.

Understanding this distinction helps clarify why charitable contributions are considered differently compared to the other options, which are clearly impacted by the overall GIMIC limitations.