Question

For 2019, Mrs. Lynn had adjusted gross income of $30,000. During the year, she contributed $9,000 in cash to her church, $10,000 in cash to qualified public charities, and a painting she has owned for 8 years with a fair market value of $16,000 and a $4,000 adjusted basis to her city's library. What is the amount of Mrs. Lynn's allowable charitable contributions deduction for the year?

A.18,000

B.19,000

C.30,000

D.35,000

Answer 1

Cash contributed in curch (Not allowed)	0
Cash contributed to qualified public charity(60% of 30000 Adjusted gross income or 10000 Which ever is less)	$10000
Fair value of painting contributed to qualified public charity(allowed) and city's liabrary ( 30% of Adjusted gross income or 20000 whichever is less)i,e 9000 or 20000 whichever is less	$9000
Total charitable contributions deduction claim	$19000

For tax year 2019, charitable deduction should not be allowed exceed 60% of Adjusted gross income in case of cash charity and should be exceed 30% of Adjusted gross income in case of fair value of property .

option (b) is correct.