Don's records contain the following information: 1.Donated stock having a fair market value of $3,600 to a qualified charitable organization.He acquired the stock five months previously at a cost of $2,400.
2)Paid $700 to a church school as a requirement for the enrollment of his daughter.
3)Paid $200 for annual homeowner's association dues.
4)Drove 400 miles in his personal auto.The travel was directly related to volunteer services he performed for his church (actual costs were not available).
How much can Don deduct as a charitable contribution?
A)$2,456
B)$3,156
C)$3,356
D)$3,656

Question

Quizplus · Accepted Answer

Don can deduct the fair market value of the donated stock, which is $3,600. He cannot deduct the cost of the stock, which was $2,400. He cannot deduct the $700 paid to the church school because it is not a qualified charitable organization. He cannot deduct the $200 paid for homeowner's association dues because it is not a charitable contribution. He can deduct the mileage driven for volunteer services, which is 400 miles at 14 cents per mile, for a total of $56. Therefore, Don can deduct a total of $3,600 + $56 = $3,656.

Don's Records Contain the Following Information: 1