Question

Problem 5-28
Contributions (LO 5.9)

Jerry made the following contributions during 2019:

His synagogue (by check)	$1,100
The Republican Party (by check)	180
The American Red Cross (by check)	200
His lodge fraternal organization for tickets to (a social club) a holiday party	100

In addition, Jerry donated used furniture to the Salvation Army costing $400 with a fair market value of $200. Jerry has adjusted gross income of $45,000, the necessary written acknowledgments, and he itemizes his deductions.

Complete the Gifts to Charity section of Schedule A below to show Jerry's deduction for 2019.

Answer 1

IN THIS CASE , THE CONTRIBUTIONS MADE BY JERRY ARE THE ITEMIZED DEDUCTIONS UNDER SCHEDULE A :-

• THESE DEDUCTIONS WILL BE GIVEN UPTO 60% OF ADJUSTED GROSS INCOME   .
• THESE DEDUCTIONS COME UNDER CHARITY.
• THE TOTAL CONTRIBUTIONS SHOULD BE ADDED AND THESE TO BE GIVEN DEDUCTED UPTO 60% OF ADJUSTED GROSS INCOME

PARTICULARS AMOUNT(RS)

SYNAGOGUE 1100

REPUBLIC PARTY 180

AMERICAN RED CROSS 200

FRATERNAL ORGANIZATION 100

FURNITURE 200

TOTAL 1780

ADJUSTED GROSS INCOME = 60% OF $45000

= 27000

60 % OF ADJUSTED GROSS INCOME IS LESS THAN DEDUCTIONS SO THE COMPLETE DEDUCTION AMOUNT CAN BE GIVEN TO JERRY.

THEREFORE THE DEDUCTION AMOUNT IS RS 1780.