Foreign Resident's Gifts to Foreign Charities

Yes. Line 37 or 38 (same thing)of the 1040 is AGI and represents the contribution base that the limit is applied to. Therefore, assuming that the charities are all 50% limited charities, the maximum deduction on Schedule A would be 50% of Line 37.

For contributions to the countries you mention, you then have to look at the tax treaty. E.g., the limit in Israel is 25% of the Israeli sourced AGI. This amount gets added to the US contributions and the 50% limit is applied to that total. Any excess gets carried forward. Once carried forward, the Israeli piece loses its character. If all Israeli income gets excluded as foreign earned income, there would not be any Israeli contributions allowed as a deduction.

I have not done the calculation, but it seems to me that there may be an opportunity to maximize the tax benefit by using the foreign tax credit or foreign tax deduction rather than the earned income or housing exclusion if one is going to make large charitable contributions.

No. It is AGI WITHOUT respect to any NOL carryback deduction (IRC 172).

When you actually compute your charitable deduction limit for the year on Form 1040 Schedule A, the NOL carryback doesn't exist. So, you actually use the AGI on the 1040. Larry asked if he should use the Line

When you have an NOL that you want to carryback you go through the process of recomputing AGI, recomputing adjustments to AGI and recomputing itemized deductions subject to AGI. You don't recompute the charitable deduction.

So, I suppose we're both right. It depends how the question is phrased.

...But it does exist when carried back and one files the amended return (either 1040X or 1045).

I don't agree: Not recomputing the charitable deduction limit is a step that cannot be ignored.

You are mis "(G) Contribution base defined For purposes of this section, the term ?contribution base? means adjusted gross income (computed without regard to any net operating loss carryback to the taxable year under section 172)."

When Larry asked if he uses the l "Do not refigure the itemized deduction for charitable contributions."

That's what I said. Otherwise, someone reading the simplified instructions will see that AGI changed and recompute EVERYTHING based on AGI. Not recomputing the charitable limit cannot be ignored (and thus performed).