Bunching Donations

[parvitstax]

Is bunching donations still allowed? If yes, can you point out a reference to the publication? Also, how many years are allowed (if any)?

I cannot find any material on IRS website or publications.

[Jim-from-Ohio]

totally fine to bunch donations in one year to try and itemize.  nothing wrong with it so there is no IRS ruling on it.   i think it is less of a thing these days with the standard deduction being so large

[parvitstax]

how many years are allowed in a single year bunch donation deduction?

[abctax55 · Accepted solution]

The deduction is taken in the year *made*.

The bunching comes from making the donations in the specific years.... don't make it on 12.31.xx, wait until 1.2.yy.  

Then make the next donation on 12.31.yy.   

So there there you are - *bunched* two years of donations into the year  * yy *.

But you as the preparer don't do this, the client has to manage it.

[parvitstax]

@abctax55 So based on that example the "max" amount of years you can "bunch" is 2. My google searches yielded plenty of posts about bunching 3-5 years... which clearly would not fit that "bunch" description you outlined.

[Just-Lisa-Now-]

Ive never heard of bunching over multiple years.   Got an IRS link to share?

[IRonMaN]

Bob's Barber shop's bulletin board. 😁

[abctax55]

It's often (or, was in prior years/decades) done to get over the standard deduction amount - more so with property taxes.  In Ca, property taxes are due twice a year,  BUT you can pay three installments in one year (then only one in the following year).

It could also be done with State estimated tax payments...pay the 1.15 one by 12.31 to move the deduction into the year wanted.  

Year one - over the standard deduction so itemize.  Following year, standard deduction.

The large standard deduction, plus SALT eliminated this strategy.

It's not an IRS *code* other than the concept of cash basis.  You deduct 'it' when you pay (or donate) it.