Question

Martin donated stock (capital gain property) to a public charity. He purchased the stock three years...

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?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Martin
Purchased Price of stock three years ago $ 1,00,000.00
Fair Market Price on the date of Gift $ 2,00,000.00
AGI $ 5,00,000.00
As per the Federal tax law stock is a appreciated securities.
For Appreciated assets including long term(stock) is deductible at fair market value but in no case deduction exceed 30% of Adjusted Gross Income.
30% of AGI=(A) $ 1,50,000.00
Fair Markey Value of appreciated stock to a Public Charity=(B) $ 2,00,000.00
(Ans) Maximum charitable contribution deduction=Less than of (A)and (B) $ 1,50,000.00
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Ed donated stock with a fair market value of $13,800 to a qualified public charitable organization...
Ed donated stock with a fair market value of $13,800 to a qualified public charitable organization on June 8, 2019. He purchased the stock nine years earlier for $10,500. Ed’s 2019 AGI is $24,000. What amount may Ed deduct as a charitable contribution in 2019? (Ed does not make the reduced deduction election.)
Ralph Reeves gave some stock that he owned to charity. The stock had a FMV of...
Ralph Reeves gave some stock that he owned to charity. The stock had a FMV of $40,000 and a basis of $32,000. His adjusted gross income is $100,000. Determine the allowed charitable contribution deduction and carryover under the following assumptions: a. Given to a public charity, no election b . Given to a public charity, elects the reduced contribution election c. Given to private charity d. Qualified appreciated stock given to private charity
Ed donated stock with a fair market value of $13,800 to a qualified public charitable organization...
Ed donated stock with a fair market value of $13,800 to a qualified public charitable organization on June 8, 2019. He purchased the stock nine months earlier for $10,500. Ed’s 2019 AGI is $24,000. What amount may Ed deduct as a charitable contribution in 2019?
In addition to cash contributions to charity, Dean decided to donate shares of stock and a...
In addition to cash contributions to charity, Dean decided to donate shares of stock and a portrait painted during the earlier part of the last century. Dean purchased the stock and the portrait many years ago as investments. Dean reported the following recipients: Charity Property Cost FMV State University Cash $ 16,800 $ 16,800 Red Cross Cash 15,400 15,400 State History Museum Antique painting 5,180 89,200 City Medical Center Dell stock 46,000 35,000 a. Determine the maximum amount of charitable...
1.John donated appreciated capital stock that he has held over a year, with an adjusted basis...
1.John donated appreciated capital stock that he has held over a year, with an adjusted basis of $20,000 and a FMV of $50,000, to a local qualified charity. His AGI for the year was $80,000. How much of John’s contribution is tax deductible? 2. On June 1, 2019, Amy purchased the following business assets:             1. Equipment for $12,000;             2. Computer for $2,300;             3. Office building for $220,000. Calculate 2019 depreciation (ignore Section 179/Bonus depreciation). 3. Becky purchased...
Helga had AGI of $135,000 in 2018. She donated corporate stock with a basis of $28,000...
Helga had AGI of $135,000 in 2018. She donated corporate stock with a basis of $28,000 to a qualified charitable organization on April 3, 2018. a. What is the amount of Helga's deduction assuming that she purchased the stock on June 15, 2017, and the stock had a fair market value of $26,000 when she made the donation? Helga's deduction is $________. b. Assuming that she purchased the stock on January 15, 2017, and the stock had a fair market...
Donna donates stock in Chipper Corporation to the American Red Cross on September 10, 2019. She...
Donna donates stock in Chipper Corporation to the American Red Cross on September 10, 2019. She purchased the stock for $24,675 on December 28, 2018, and it had a fair market value of $35,250 when she made the donation. a. What is Donna's charitable contribution deduction? The stock is treated as (capital gain/ordinary income) property and Donna's charitable contribution deduction is ($______) for tax purposes. b. Assume instead that the stock had a fair market value of $21,150 (rather than...
Kelly, who has AGI of $250,000, owns stock in Blue corporation with a basis of $20,000....
Kelly, who has AGI of $250,000, owns stock in Blue corporation with a basis of $20,000. he donates the stock to a qualified charitable organization on July 5, 2018 A.) what is the amount of Kelley's charitable contribution deduction, assuming that he purchased the stock on March 4, 2018 and the stock had a fair market value of $27,000 when he made the donation> B.) Assume the same facts as in a., except that kelly purchased the sock on August...
Henry’s adjusted gross income is $50,000 in 2018. He donated a piece of artwork with a...
Henry’s adjusted gross income is $50,000 in 2018. He donated a piece of artwork with a basis of $10,000 and a fair market value (FMV) of $25,000. He has owned the artwork for 10 years. The charity that Henry donated the artwork to is a public charity and will display the art work in its art center. What is the maximum charitable deduction in 2018 that Henry can take? a.$0. b.$10,000. c.$15,000. d.$25,000. Diego has AGI of $125,000 before considering...
Ramon had AGI of $180,000 in 2018. He is considering making a charitable contribution this year...
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...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT