Larry recorded the following donations this year:
$500 cash to a family in need
$2,400 to a church
$500 cash to a political campaign
To the Salvation Army household items that originally cost $1,200 but are worth $300.
What is Larry's maximum allowable charitable contribution if his AGI is $60,000?

Question

Quizplus · Accepted Answer

Larry's maximum allowable charitable contribution is calculated as a percentage of his AGI, which is 60,000. The maximum he can deduct is 50% of his AGI, which is $30,000. The total amount of his charitable contributions is $3,900 ($500 + $2,400 + $500 + $300). However, the value of the household items donated is only $300, so that is the maximum amount he can deduct for that donation. Therefore, the total amount that he can deduct is $2,700 ($2,400 + $300), which is option C.

Larry Recorded the Following Donations This Year