Question

Part2

a. Mourezky gave some long-term real estate to a church. The property was worth $33,000 and had a basis of $10,000.   Mourezky’s adjusted gross income was $60,000 and Mourezky made cash contributions of $9,000. How much is Mourezky’s charitable deduction?

b. Casey made several contributions to Casey’s alma mater during the current year as follows:

Cash                                                                                                             $ 4,200

A painting that Casey has owned five years for display

in the library (basis, $1,280), FMV                                                                 9,500

Stock held for 10 months as an investment (basis, $900), FMV 1,200

Assuming Casey’s AGI is $30,000, how much is Casey’s charitable contribution deduction?

Answer 1

a. Mourezky's charitable deduction would be:-

cash= $9000( in 2020 an individual gets 100%ofAGI deduction on cash contribution if done to qualified institution and church is an qualified institution

property- Fmv=$33000 ( only 50% of AGI can be claimed in case of donation of property, so( .50*60000)can be claimed

Total of Mourezky's deduction = $9000+30000=$39000

b. Casey's deduction=

cash=$4200(in 2020 an individual gets 100%ofAGI deduction on cash contribution if done to qualified institution and educational instution is an qualified institution

painting=$9500( if it is displayed at charity then Fmv is the amount of deduction but it will be limited to 50% of AGI= 15000

stock=$900( as stock is short term only cost is allowed as deduction

both stock and painting is less than 15000(50% of AGI

Total Casey charitable contribution deduction=$ 4200+9500+900=$14600