Capital gain property
Donated property that would have produced a long-term capital gain if you had sold it instead of giving it away.
Capital gain property is property whose sale would generally have produced long-term capital gain: appreciated securities, real estate held long enough, some collectibles. Publication 526 gives it a distinct set of percentage limitations, and a section headed Carryover of capital gain property covering what happens when a limit blocks part of the deduction in the year of the gift.
Household goods are almost never capital gain property, because used clothing and furniture are worth less than what was paid for them. That is the ordinary case this site is written for, and it is a simpler one.
Sources
- Publication 526 (2025), Charitable Contributions, full textIRS, IRS publication
Definitions describe the rule as published. They are not tax advice, and almost every threshold above has an exception attached to it in the underlying publication. Confirm anything that affects a return with a qualified tax professional.
Related terms
Ordinary income property
Donated property whose sale would not have produced long-term capital gain. Its deduction is generally reduced below fair market value.
AGI limit (percentage limitation)
A ceiling on charitable deductions expressed as a percentage of adjusted gross income, varying by gift type and recipient.
Carryover
Charitable contributions you could not deduct this year because of a percentage limit, carried forward to future years.
Automatic revocation
Loss of tax-exempt status for failing to file a required annual return or notice for three consecutive years.
Values with the source attached
DeductiBee applies a cited fair-market-value range to everything you donate, keeps the photo with the record, and exports a Form 8283 worksheet when you file.
