Question

Ray Ray made the following contributions this year.

Charity	Property	Cost		FMV
United Way	Cash		7,863	7,863
American Heart Association	Pepsi stock		11,049	12,732
First Methodist Church	Antique painting		4,896	5,629

American Heart Association plans to sell the stock to fund its operations. First Methodist Church intends to sell the antique painting. Ray Ray has owned the painting and Coca-Cola stock since 1990.

What is the total amount of charitable contributions subject to the 50% of AGI ceiling?

Answer 1

Charitable contributions to United Way, Churches and hospitals and medical research organisations come under 50% limit category qualified institutions as per Publication 526 of the Internal Revenue Services.
However, cash contribution to these 50% limit organisations is subject to 60% deduction from AGI.
Therefore, cash contribution to United way will qualify for 60% deduction and not 50% deduction.

Further, contributions of Pepsi stock to American Heart Association and contribution of antique painting to First Methodist Church will qualify for 50% deduction from AGI, at fair market value.

So, total deduction under 50% limit of AGI = $12,732 + $5,629 = $18,361