Question

Calvin reviewed his cancelled checks and receipts this year for charitable contributions, which included an antique painting and IBM stock. He has owned the IBM stock and the painting since 2005 Donee Item Cost FMV $ 5,400 $26,000 5,200 Hobbs Medical Center IBM stock Antique painting Food and clothes State Museum 3,120 260 A needy family United Way 440 Cash 12,000 12,000 Calculate Calvin's charitable contribution deduction and carryover (if any) under the following circumstances. (Leave no answer blank. Enter zero if applicable.) b. Calvin's AGI is $120,000 but the State Museum told Calvin that it plans to sell the painting. Charitable contribution deduction Carryover

Answer 1

Part B

Charitable contribution deduction	$41120
carryover	$0

Calvin’s deduction = cash of $12,000 + painting of $3,120 + stock of $26,000 = $41120

Donation to the needy family will not qualify for a charitable deduction.

IBM stock being a capital gain property, the FMV of the stock can be deducted subject to a 30% of AGI ceiling.

The painting not being a capital gain property, the value of the painting can be deducted subject to the 50% of AGI ceiling.

However, the total donation is subject to the 50% of AGI ceiling.