Question

Required information (The following information applies to the questions displayed below.) Calvin reviewed his canceled 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 Hobbs Medical Center IBM stock State Museum Antique painting A needy family Food and clothes United Way Cash Cost THV $ 6,800 $40,000 5.900 3,540 580 350 26,000 26,000 Calculate Calvin's charitable contribution deduction and carryover (if any) under the following circumstances. (Leave no answer blank. Enter zero if applicable.) e. Calvin's AGI is $190,000, but the painting is worth $64.000. Charitable contribution deduction Carryover

Answer 1

Solution

Charitable contribution deduction	$69,540
carryover	$0

Calvin’s deduction = cash of $26,000 + painting of $3,540 + stock of $40,000 = $69,540

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.

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