Question

On December 27, 2019, Roberta purchased ten tickets to a charity ball sponsored by the city of San Diego for the benefit of underprivileged children. Each ticket cost $75 and had a fair market value of $15. On the same day as the purchase, Roberta gave the tickets to the minister of her church for personal use by his family. At the time of the gift of the tickets, Roberta pledged $7,050 to the building fund of her church. The pledge was satisfied by a check dated December 31, 2019, but not mailed until January 3, 2020.

If an amount is zero, enter "0".

a. Presuming Roberta is a cash basis and calendar year taxpayer, she can deduct $ for the tickets and
$ for the pledge as a charitable contribution for 2019.

b. Would the amount of the deduction be any different if Roberta were an accrual basis taxpayer?
If Roberta is an accrual basis and calendar year taxpayer, she can deduct $ for the tickets and $ for the pledge as a charitable contribution for 2019.

Answer 1

Answer -

a. Cash basis of accounting -

Roberta can deduct $ 600 ($75*10-15*10) for tickets and $ 0 for the pledge as a charitable contribution

Now as Roberta is deriving a tangible benefit from this contribution so she will get a deduction of difference between ticket value and fair value.

Also a charitable contribution is deducted when the payemnt is made and in case of check mailing date is considered as delivered.she cannot deduct anything for the pledge as a charitable contribution

b. Accrual basis of accounting -

Roberta can deduct $ 600 for tickets and $ 0 for the pledge as a charitable contribution

There will be no change because deduction is based on payment

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