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Ronald donates publicly traded Microsystems stock with a basis of $2,000 and a fair market value...

Ronald donates publicly traded Microsystems stock with a basis of $2,000 and a fair market value of $20,000 to the local library, which is considered a public charity. Ronald has $30,000 of adjusted gross income, and he purchased the stock 15 years ago. How is this contribution treated on Ronald’s tax return?

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Answer #1

Ans:

Contribution:

$20,000. - $2000

$ 18000.

Explanation

1) $18000 is a value of contribution.

2) Gross Income is $30,000

3) when contribution is more than 50% of AGI , taxpayer cannot grant deductions.

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