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PERCENTAGE LIMITATIONSAmount of excess contributions treated as paid in 2008—lesser of $2,400 (available carryoversto 2008) or $2,000 (excess of 50% of contribution base ($5,000) over contributions actuallymade in 2002 to public charitable organizations ($3,000)) = $2,0002009Less: Amount treatedas paid in year priorto 2003Available charitablecontributionscarryoversContribution yearTotal excess2005 $1,000 $1,000 02006 900 900 02007 500 100 $4002008 0Total $ 40050 percent of D’s contribution base for 2009 $4,500Less: Charitable contributions made in 2009to public charitable organizations 1,500$3,000Amount of excess contributions treated as paid in 2009—lesser of $400 (available carryovers to2009) or $3,000 (excess of 50% of contribution base ($5,500) over contributions actually madein 2009 to public charitable organizations ($1,500) a $400aReg. § 1.170A-10(b)(2), Example (3).EXAMPLE 7.7 (CONTINUED)§ 7.6 THIRTY PERCENT LIMITATION FOR GIFTSOF CERTAIN PROPERTYA 30 percent limitation applies with respect to charitable contributions of certainproperty that has appreciated in value since the donor acquired the property,when the recipient is a public charitable organization. 52 Thus, even though thedonee is a public charitable organization, the percentage limitation in this contextis 30 percent, not 50 percent.(a) General RulesTo be subject to treatment under this 30 percent limitation, an item of propertymust satisfy three requirements:1. The property must be a capital asset 532. If the property were sold by the donor at its fair market value at the timeof the contribution, the sale would result in the recognition of gain, all orany portion of which would be long-term capital gain3. The circumstances are not such that the amount of the contribution need bereduced by the appreciation element inherent in the capital gain property 5452 IRC § 170(b)(1)(C)(i); Reg. § 1.170A-8(d)(1).53 See Chapter 2. A property that is used in a trade or business (IRC § 1231(b)) is treated as a capital asset.54 See §§ 4.5, 4.6. 198