Question

In December each year, Eleanor Young contributes 10% of her gross income to the United Way (a 50% organization). Eleanor, who is in the 24% marginal tax bracket, is considering the following alternatives for satisfying the contribution Fair Market Value $100,000 $103,000 (1) Cash donation (2) Unimproved and held for six years ($15.450 basis) (2) Blue Corporation stock held for eight months (515,450 basis) (4) Gold Corporation stock held for two years ($123,600 basis) $103,000 $10,000 Eleanochas esked you to help her decide which of the potential contributions listed above will be most advantageous tax-wise. Evaluate the four elternatives and complete a letter to Eleanor. Determine the amount of the charitable contribution for each option. Charitable Contribution Casti donation Unimproved land held for six years ($15,450 basis) Bue Corporation stock held for eight months ($15,450 basis) Gold Corporation stock held for two years ($ 123,600 basis)

Answer 1

Cash Donation Unimproved land held for six years ($15,450 basis) Blue corporation stock held for eight months ($15,450 basis) Gold corporation stock held for two years ($123,600 basis) Charitable contribution 103000 103000 15450 103000