During 2011,Ralph made the following contributions to the University of Oregon (a qualified charitable organization): Ralph acquired the stock in Raptor,Inc.,as an investment fourteen months ago at a cost of $42,000.Ralph's AGI for 2011 is $189,000.What is Ralph's charitable contribution deduction for 2011?

Question

During 2011,Ralph made the following contributions to the University of Oregon (a qualified charitable organization):  Ralph acquired the stock in Raptor,Inc.,as an investment fourteen months ago at a cost of $42,000.Ralph's AGI for 2011 is $189,000.What is Ralph's charitable contribution deduction for 2011?

Quizplus · Accepted Answer

Ralph can deduct the fair market value of the stock as a charitable contribution, which is $94,500 ($150 per share x 630 shares). This deduction is limited to 30% of his AGI for the year, which is $56,700 ($189,000 x 30%). However, Ralph can carry over any excess contribution to future years for up to five years.

During 2011,Ralph Made the Following Contributions to the University of Oregon