Question

Required information Problem 6-44 (LO 6-2) [The following information applies to the questions displayed below.) In addition to cash contributions to charity, Dean decided to donate shares of stock and a portrait painted during the earlier part of the last century. Dean purchased the stock and the portrait many years ago as investments. Dean reported the following recipients: Charity State University Red Cross State History Museum City Medical Center Property Cash Cash Antique painting Dell stock Cost FMV $19,400 $19,400 16,700 16,700 5,440 99,600 72,000 61,000 Problem 6-44 Part-b b. Assume that Dean's AGI this year is $370,000. Determine Dean's itemized deduction for his charitable contributions this year and any carryover. Deduction Carryover

Answer 1

Part B

Deduction	$185000
Carryover	$11700

Dean itemized deductions = 36100+61000+87900 = $185000

Deduction of antique should be lesser of the value of the antique up to the 30 percent AGI limit ($111,000) or the remaining amount of deduction to reach the 50 percent limit (87900)

Itemized deduction is consisting of cash of $36100, stock of $61,000, and the antique of $87900

Carryover = remaining value of the antique = (99600-87900) = $11700

The value of deduction should not exceed 50% of AGI

Dean can deduct all of his cash contributions and the value of the stock as the total does not exceed the 50% AGI limit.

50 percent AGI limit		185000
Contributions – cash	36100
Contributions – stock	61000
Total contributions		97100
Maximum remaining contribution to reach 50 percent		87900