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§ 7.10 INTERPLAY OF 50 PERCENT/GENERAL 30 PERCENT LIMITATIONScharitable contribution deduction is computed by first taking into considerationthe gift or gifts to one or more public charitable organizations. 101 Thecontributions subject to the 30 percent limitation are deductible, in whole or inpart, only to the extent that: (1) these gifts do not exceed the 30 percent limitation;or (2) the gift or gifts to one or more public charitable organizations do not,in the aggregate, exceed the amount allowable by the 50 percent limitation.The actual deductible amount is the lesser of these two items. That is, the maximumamount deductible in any one year for gifts subject to the 30 percent limitationin these circumstances is the lesser of the amount capped by the 30 percentlimitation or the amount (if any) represented by the “gap” between the amountcontributed to one or more public charitable organizations during the year and themaximum amount allowable under the 50 percent limitation for the year.These rules concerning gifts of money are illustrated in the following twoexamples:EXAMPLE 7.17B had, for 2005, a contribution base of $100,000. During 2005, B made charitable contributionsof $70,000 in money, $40,000 of which was given to public charitable organizations and$30,000 of which was given to charitable organizations that were not public charitableorganizations. B was allowed, for 2005, a charitable contribution deduction of $50,000 (50% of$100,000), which consisted of the $40,000 contributed to the public charities and $10,000 ofthe $30,000 contributed to the other organizations. Only $10,000 of the $30,000 contributed tothe other charitable organizations was allowed as a deduction, because the contribution of$30,000 was allowed to the extent of the lesser of $30,000 (30% of $100,000) or $10,000 ([50%of $100,000] − $40,000, being the contributions allowed under the 50 percent limitation). aaReg. § 1.170A-8(f), Example (1).EXAMPLE 7.18H and W (husband and wife) had a contribution base for 2005 of $50,000 and for 2006 of$40,000, and filed a joint return for both years. In 2005, H and W made a charitablecontribution in money of $26,500 to PC, a public charitable organization, and $1,000 to PF,a charitable organization that is not a public charitable organization. In 2006, they made acharitable contribution in money of $19,000 to PC and $600 to PF. They were able to properlyclaim a charitable contribution deduction of $25,000 in 2005 (50 percent of $50,000). Thisdeduction was of $25,000 of the gift to PC; none of the gift to PF was deductible in 2005.The excess of $2,500 ($27,500 − $25,000) constituted a charitable contribution carryover thatwas subsequently treated as a charitable contribution paid by them to a public charitableorganization ($1,500) and a nonpublic charitable organization ($1,000) in each of the fivesucceeding tax years in order of time. Their contribution of $19,000 to PC in 2006 was fullydeductible in that year, because 50 percent of their contribution base was $20,000. Also,$1,000 of the $1,500 carryover (actually contributed to PC in 2005) was considered paid to PCin 2006 and was deductible in that year. Thus, H and W had a 2006 charitable contributiondeduction of $20,000. Once again, none of the gift to PF was deductible in 2006. Theremaining $500 contributed to PC in 2005 was treated as a carryover of gifts of money topublic charitable organizations; the gifts to PF of $1,000 in 2005 and $600 in 2006 weretreated as a carryover of gifts of money to charitable organizations that are not public charitableorganizations. aaReg. § 1.170A-10(b)(1), Example 1.101IRC § 170(b)(1)(B). 209