CARES Act and charitable donations
Paul Sullivan in the NY Times on 9/19 stated that “A provision in the CARES Act allows for 100 percent of charitable donations made in cash to be counted against your income this year. When I ran it past my accountant she said: “The article is lacking the IRS rules for 60% of AGI limit on charitable donations!!”
Who’s correct?
Permalink Submitted by Alan - IRA critic on Tue, 2020-09-22 19:37
The accountant is incorrect. Sec 2205 of the CARES Act erases the 60% limitation for cash donations made in 2020. If taxable income is reduced to 0, any excess can be carried forward to future years. Like QCDs, no donations to donar advised funds or private foundations allowed.