donation was made. Indicate the correct income tax treatment with respect to the
Stock in the ABC Corporation was contributed to a public charitable organization. The
basis in the stock was $1,000, but its fair market value was $1,500 at the time of the
donation. Indicate the correct income tax treatment as a result of the donation. The stock
was held long term.
Albert Allgood has adjusted gross income in the current year of $30,000. He gave
$5,000 cash and a capital gain asset (held long term) costing $10,000, worth $12,000, to
a public charity, and an $8,000 cash contribution to a 20 percent charity. What is the
amount of his maximum allowable current charitable contribution deduction, assuming
no elections are made? (Assume any carryovers will be used in the future.)
Determine the amount of charitable contribution allowed for the current year assuming
Guy Gallworthy has adjusted gross income of $30,000 and gave inventory costing
$2,000 but worth $2,500 to a public charity.
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