739 / What is the maximum annual limit on the income tax deduction allowable for charitable contributions?
For an explanation of the deduction for charitable gifts of life insurance, see Q 120.
In the case of a gift of S corporation stock, special rules (similar to those relating to the treatment of unrealized receivables and inventory items under IRC Section 751) apply in determining whether gain on such stock is long-term capital gain for purposes of determining the amount of a charitable contribution.1
A contribution of a partial interest in property is deductible only if the donee receives an undivided portion of the donor’s entire interest in the property. Such a contribution was upheld even where the donee did not take possession of the property during the tax year.2 Generally, a deduction is denied for the mere use of property or for any interest which is less than the donor’s entire interest in the property, unless the deduction would have been allowable if the transfer had been in trust.
1. IRC § 170(e)(1).