Charitable Contributions -- Elections on Limit, and on Itemizing

[BobKamman]

I’m being lazy on this one, but if it isn’t a situation that someone else has already encountered, it might happen to you any day.

Client has $12,101 AGI and $10,250 of charitable contributions. They qualify for the 100% deduction but if I don’t indicate that, they are limited to 60% AGI ($7,261). If the limited amount is claimed, the standard deduction is better, and he owes no tax. But even if he elects to itemize, there is no tax.

If he does that, can he carry over the unused deductions to next year? But wait, there’s more. If I give him the 100% limit, the program shows he has a $2,840 carryover from previous years. I have no idea where this comes from, because he has claimed standard deduction for at least the last three years (had he itemized, the charitable amount would have been limited).

His income fluctuates because of capital gains and IRA withdrawals, so there might be an advantage to carrying over the deductions. That is allowed, if he chooses to itemize, right? But does it happen anyway, even if he takes standard deduction?