Question

Based off of 2017 Emily wants to contribute $3,100 to the Girl Scouts. Is it more...

Based off of 2017

Emily wants to contribute $3,100 to the Girl Scouts. Is it more advantageous for her to give cash to the Scouts or to give CBA common stock (held long-term) which cost $4,500 and is worth $3,100

Homework Answers

Answer #1

It is better to give cash or even better to sell stock and give proceeds.

When stock is donated deduction islimited to its fair market value that is $3,100 and the realized loss is not deductible. So its better to give cash and giving cash is in a fairly better position with respect to AGI limitations.

By selling stock loss is allowed to set off against other capital gains or up to $3,000 is deductible against other income and then contributing cash is also a better idea.

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