Question

In Jan 1999, Oscar bought 100 shares of PROCTER GAMBLE CO (PG) for 90/share (9,000 total)

It split 2:1 on 06/21/04

On 05/26/2017, when the stock price was $87.25/share, Oscar gave 200 shares of PG to the NSU Foundation.

Immediately after the gift, on 05/26 Oscar bought 200 shares of PG also for 87.25/share.

Oscar has AGI in excess of $100,000.

What is the amount of Oscar's charitable contribution deduction?

Answer 1

Oscar bought 100 shared of PG for 90 per share in Jan 1999. Amount spend by him is $9,000.

in 2004, company splits its shared in 2:1 ration so Oscar now have 200 shares of PG.

on 05/26/2017, oscar gave its 200 shared of PG to the NSU foundation when price of the share was $87.25 so the market price of the 200 shares of PG is $ 17,450 and also bought another 200 shares of PG at the same rate.

Basis of the above fact, the amount of Oscar's charitable contribution deduction would be the market value of the shares which has been gifted to NSU. So it is $ 17,450.