Pat gave 5,000 shares of stock in Coyote Corporation (a publicly traded corporation) to her church (a qualified charitable organization) in the current year. The stock was worth $180,000. She had acquired it as an investment four years ago at a cost of $120,000. She reported AGI of $300,000 for the year. In completing her current income tax return, how much is her current-year charitable contribution deduction? a.$120,000 b.$180,000 c.$150,000 d.$90,000 e. None of these choices are correct.

Question

Tristian Randolph

Business

8 August, 18:15

Pat gave 5,000 shares of stock in Coyote Corporation (a publicly traded corporation) to her church (a qualified charitable organization) in the current year. The stock was worth $180,000. She had acquired it as an investment four years ago at a cost of $120,000. She reported AGI of $300,000 for the year. In completing her current income tax return, how much is her current-year charitable contribution deduction? a.$120,000 b.$180,000 c.$150,000 d.$90,000 e. None of these choices are correct.

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Answers (1)

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Lorelei · Answer 1

d.$90,000

Explanation:

given data

shares of stock = 5,000

stock was = $180,000

four years ago cost = $120,000

AGI = $300,000

solution

we know that as per capital gain property in general rule Pat deduct will be as

deduct = 30% of AGI ... 1

deduct = 30% of $300,000

current deduct = $90,000

and

remaining will be as

remaining = fair market value - current deduction ... 2

remaining = $180,000 - $90,000

remaining = $90,000

so remaining amount carry over up to 5 years

so correct option is d.$90,000