Basic Federal Income Taxation: Deductions: Charitable Contribution Deductions: Basic Concepts and Computations

This lesson is best used after studying Basic Federal Income Taxation, deductions for charitable contributions to a section 501(c)(3) organization, in class. The lesson provides problem sets to work through to allow you to refine your ability to apply the Code and Regs. to a variety of situations.

Learning Outcomes

On completion of the lesson, the student will be able to:

1. Distinguish voluntary gift contributions from other types of transfers.
2. Explain the treatment of donation of services and out-of-pocket costs incurred in providing services.
3. Recognize and compute the overall percentage limitations that apply to the deduction of contributions to public and private charities.
4. Discuss the difference between donations by individuals and donations by corporations.