Question

Ray Ray made the following contributions this year. 3 Charity Property Athens Academy School Cash United Way Cash American Heart Association Antique painting First Methodist Church Coca-Cola stock Cost FRV $ 5,950 $ 5,950 5,050 5,050 16,650 83,250 14,700 22,050 1:37:13 Determine the maximum amount of charitable deduction for each of these contributions ignoring the AGI ceiling on charitable contributions and assuming that the American Heart Association plans to sell the antique, painting to fund its operations. Ray Ray has owned the painting and Coca-Cola stock since 1990, Maximum Amount Cash contributions Property donations

Answer 1

The maximum amount is $11,000 ( $5950 + $5050 ) for the cash contributions and $38,700 for the property donations. Because Ray Ray has reason to expect that the American Heart Association will sell the antique painting, the antique is used for a purpose unrelated to the American Heart Association’s charitable purpose. Thus, Ray Ray’s deduction for the painting is limited to his basis in the painting ($16,650). The amount of the deduction for the Coca Cola stock is its fair market value ($22,050) because the stock is considered intangible, appreciated long-term capital gain property.