Question

During the current year, the Grinch made the following contributions to the Whoville Education Fund (a qualified charitable organization):

Cash                                                                                                  65,000

Stock in Mount Crumpit, Inc. (a publicly traded corporation)                94,500

The Grinch acquired the stock in Mount Crumpit, Inc., as an investment fourteen months ago at a cost of $42,000. The Grinch’s AGI for the year is $190,000.

What is the deductible value of the contribution?

What is the Grinch’s charitable contribution for the current year and how will this deduction be allocated between the contributed property?

Is there any carryover? If so, what is the amount of the carryover and under what circumstances will the carryover be deductible?

Answer 1

Solution:

Deductible estimation of commitment.

For any money gift to qualify as assessment derivation following conditions must qualify:

The gift can't surpass 60% of your balanced gross income(AGI).

One must acquire a receipt for any measure of cash gave.

Grinich's AGI is 190,000

Money gift is 65,000

Qualifying sum Cash gift constrained to 60% of AGI 65,000

.

For any stock gift to qualify as expense finding following conditions must qualify:

Long haul refreshing stocks are commonly deductible at honest esteem, up to 30% of your AGI.

Grinich's AGI is 190,000

Acknowledged reasonable estimation of stock in mount crumpit inc 94,500

Qualifying sum Donation constrained to 30% of AGI 57,000

.

Remainder measure of 37,500(94,500 - 57,000) can be persisted for a long time for guaranteeing conclusions.