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18 May, 18:26

Jaylen made a charitable contribution to his church in the current year. He donated common stock valued at $33,000 (acquired as an investment in 2005 for $13,000). Jaylen's AGI in the current year is $75,000. What is his allowable charitable contribution deduction? How are any excess amounts treated?

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  1. 18 May, 18:36
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    Amount of deduction is $22500

    Explanation:

    given data

    donated common stock value = $33,000

    investment = $13,000

    AGI = $75,000

    solution

    as we know that public charities is deductible = 30% of individual contribution base

    and carried over for = 5 years

    and contribution base is adjust gross income get without regard taking any net operate loss carry back to tax year

    Carry over amount = donated - Amount of deduction ... 1

    Carry over amount = $33,000 - ($75000 * 30%)

    Carry over amount = $10500

    so here Carry back will be $0.
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