Question

Ramon had AGI of $180,000 in 2018. He is considering making a charitable contribution this year to the American Heart Association, a qualified charitable organization. Determine the current allowable charitable contribution deduction in each of the following independent situations, and indicate the treatment for any amount that is not deductible currently.

a. A cash gift of $95,000.

In the current year, Ramon may deduct $ 95,000 since his
charitable contribution is limited to **$
_________**

**c.** A gift of a painting worth $95,000 that
Ramon purchased three years ago for $60,000. The charity has
indicated that it would sell the painting to generate cash to fund
medical research.

The contribution is valued at $60,000. The amount deductible in
the current year is **$ ______**

**d.** Ramon has decided to make a cash gift to the
American Heart Association of $113,000. However, he is considering
delaying his gift until next year when his AGI will increase to
$300,000 and he will be in the 32% income tax bracket, an increase
from his current-year income tax bracket of 24%.

Assume a 6% discount rate. The present value factors, at a 6% discount rate, are as follows:

Year | PV Factor at 6% |

1 | 0.9434 |

3 | 0.8396 |

5 |
0.7473 |

If required, round your final answers to the nearest dollar.

Ramon asks you to determine the tax savings from the tax deduction in present value terms if he were to make the gift this year, rather than delaying the gift until next year. For purposes of this analysis, ignore the potential impact of the overall limitation on certain itemized deductions.

Total present value of tax savings from the tax deduction if
made this year: **$ _______**

Total present value of tax savings from the tax deduction if made
next year: $ 34,113

Answer #2

a. In the current year, Ramon may deduct $ 95,000 since his
charitable contribution is limited to **$90000 (50% of
AGI).** The Remaining $5000 can be carried forward for 5
years.

c. The contribution is valued at $60,000. The amount deductible
in the current year is **$ 60000 as it is less than 50% of
AGI**

d. Total present value of tax savings from the tax deduction if
made this year = $113000 * 0.24 * 0.9434 =
**$25585**

Total present value of tax savings from the tax deduction if made next year = $113000 * 0.32 * 0.89

**Total present value of tax savings from the tax
deduction if made next year = $32182**

answered by: anonymous

d. Ramon has decided to make a cash gift to the
American Heart Association of $144,200. However, he is considering
delaying his gift until next year when his AGI will increase to
$300,000 and he will be in the 32% income tax bracket, an increase
from his current-year income tax bracket of 24%.
Assume a 6% discount rate. The present value factors, at a 6%
discount rate, are as follows:
Year
PV Factor at 6%
1
0.9434
3
0.8396
5...

Which of the following is TRUE regarding the
charitable contribution itemized deduction (ignore any AGI
maximums)?
Frank is allowed to deduct the $100 he gave to a needy person
begging outside the grocery store.
Joe donated land he has owed for several years to a qualified
charity (registered with the IRS). Joe is allowed to
take a charitable contribution deduction in the amount of the
current value of the land, even though his cost is less than its
current value.
Armondo...

Marco, a calendar-year taxpayer, made the following charitable
contributions in the current year: Cash to the church $5,000 FMV;
Unimproved land (with cost basis of $30,000) to the local college
$70,000 FMV. The land had been held as an investment by Marco for 5
years. If Marco's AGI is $120,000 and if he wants to maximize his
charitable contribution deduction in the current year, what is
Marco's maximum allowable charitable contribution deduction for the
current year?
A) $35,000
B) $41,000...

Diana made a charitable contribution to his church in the
current year. She donated common stock valued at $30,950 (acquired
as an investment in 2005 for $15,000). Diana's AGI in the current
year is $79,000.
Required:
What is his allowable charitable contribution deduction?
b. How are any excess
amounts treated?

Calvin reviewed his cancelled checks and receipts this year for
charitable contributions, which included an antique painting and
IBM stock. He has owned the IBM stock and the painting since
2005.
Donee
Item
Cost
FMV
Hobbs Medical Center
IBM stock
$
5,000
$
22,000
State Museum
Antique painting
5,000
3,000
A needy family
Food and clothes
400
250
United Way
Cash
8,000
8,000
Calculate Calvin's charitable contribution deduction and
carryover (if any) under the following circumstances.
(Leave no answer blank....

Martin donated stock (capital gain property) to a public
charity. He purchased the stock three years ago for $100,000, and
on the date of the gift, it had a fair market value of $200,000.
What is his maximum charitable contribution deduction for the year
related to this stock if his AGI is $500,000?

Venkat is age 32, single, and reported AGI of
$70,000 in tax year 2019. He is an active participant in his
employer's pension plan. What is the maximum deductible IRA
contribution he can make in 2019?
A) $0.
B) $2,400.
C) $3,600.
D) $6,000.
Jill is single, age 27, and reported AGI of $66,000
in tax year 2019. She is an active participant in her employer's
pension plan. What is the maximum deductible Roth IRA contribution
she can make in...

Bruno is married filing separate and has one dependent. His AGI
is $164,000 for 2018. He incurred the following expenses and losses
during the year:
Medical expenses before the 7.5%-of-AGI limitation
$9,900
State and local income taxes
5,600
State sales tax
1,800
Real estate taxes
6,100
Home mortgage interest
7,000
Credit card interest
2,350
Charitable contribution
3,200
Casualty loss before 10% limitation (after $100 floor; not in a
Federally declared disaster area)
19,000
Unreimbursed employee expenses subject to the 2%-of-AGI...

For 2018, Sleevo Shirt Corporation had taxable income before the
charitable contributions deduction of $10,000 and charitable
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a.$0
b.$10,000
c.$1,000
d.$15,000
Kathy and Irene form Wintercrest Corporation. Kathy contributed
cash of $10,000 in exchange for 100 shares of Wintercrest stock.
Irene contributed property with a fair market value of $14,000,
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Henry’s adjusted gross income is $50,000 in 2018. He donated a
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charity that Henry donated the artwork to is a public charity and
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a.$0.
b.$10,000.
c.$15,000.
d.$25,000.
Diego has AGI of $125,000 before considering...

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