For preparers who report charitable contributions on individual returns — the OBBBA-introduced above-the-line deduction for non-itemizers, the 0.5% AGI floor for itemizers, and the substantiation thresholds that determine whether a deduction holds.
OBBBA changed charitable giving on both sides. Non-itemizers now claim an above-the-line deduction that did not exist before. Itemizers face a new 0.5% AGI floor before charitable contributions reduce taxable income. The qualified organization requirements under IRC §170(c) did not change, but the substantiation thresholds — contemporaneous written acknowledgment under §170(f)(8), Form 8283 at $500, qualified appraisal at $5,000 — became more consequential when the deduction they support is either fully above-the-line or subject to the new floor.
This course covers the current-year charitable contribution rules. Coverage includes the non-itemizer above-the-line deduction under OBBBA, the 0.5% AGI floor applicable to itemized charitable deductions, qualified organization requirements under §170(c), deduction limitations by contribution type and organization classification under §170(b), and carryover rules under §170(d) for contributions exceeding annual limits. The course addresses the substantiation architecture: the contemporaneous written acknowledgment requirement, the $500 Form 8283 threshold, the $5,000 qualified appraisal threshold, and special rules for contributions of vehicles, publicly traded securities, and high-value property.
The course closes with the recordkeeping practices required to sustain charitable deductions under IRS review, and the documentation the taxpayer must have in place before the deduction is claimed rather than after it is examined. Two hours of Federal Tax credit.
By the end of this course, participants will be able to:
The non-itemizer above-the-line deduction and the 0.5% AGI floor for itemizers, how the two rules interact for taxpayers on the standard-vs-itemized margin, and the effect on charitable planning.
The organization types that qualify to receive deductible contributions, the classification distinctions that drive the §170(b) percentage limitations, and how a taxpayer verifies an organization's status.
Annual deduction caps by contribution type and organization classification, and the ordering rules when a taxpayer contributes to multiple organization types in one year.
The contemporaneous written acknowledgment rule under §170(f)(8), the $500 threshold for Form 8283, the $5,000 threshold for qualified appraisal, and the requirement to have documentation in place before the deduction is claimed.
Contributions of vehicles under §170(f)(12), publicly traded securities, and high-value property including artwork and real estate.
Five-year carryover mechanics for contributions exceeding annual limits, and the tracking a taxpayer maintains across multiple return years.
Jennifer Harris Smith, JD, CPA. Attorney (Texas). CPA (Texas). Member of Texas Bar College. Full bio →