Question

Ray Ray made the following contributions this year.

Charity Property Cost FMV

Athens Academy School Cash $ 5,200 $ 5,200

United Way Cash 5,250 5,250

American Heart Association Antique painting 15,150 75,750

First Methodist Church Coca-Cola stock 16,300 24,450

Determine the maximum amount of charitable deduction for each of these contributions ignoring the AGI ceiling on charitable contributions and assuming that the American Heart Association plans to sell the antique painting to fund its operations. Ray Ray has owned the painting and Coca-Cola stock since 1990.

Cash contributions:

property donations:

Answer 1

Solution

Cash contribution =$10450(5200+5250)

Property contribution =$39600(15150+24450)

Note -The maximum cash contribution is $10450 and for the property donation it is $39600 as ray ray had a reason that the American heart association is going to sell out the antique painting for the purpose which is unrelated to American heart association charitable purpose that is why ray ray deduction is limited to $15150 which is his basis in the painting and deduction in coca cola stock is it share market value which is $24450 as this stock is considered as intangible,long-term capital gain property.