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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?

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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
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