Grace has AGI of $60,000 in 2014 and 2015.She makes cash contributions to public charities of $34,000 in 2014 and $31,000 in 2015.Grace's charitable contribution carryover to 2016 is

Question

Quizplus · Accepted Answer

- In 2014, Grace can deduct up to 50% of her AGI in charitable contributions, which would be $30,000 (50% x $60,000). Therefore, she can fully deduct her $34,000 contribution.
- In 2015, Grace can also deduct up to 50% of her AGI, which remains $60,000. However, since she already donated $34,000 in 2014 and the maximum deduction is $30,000, she can only deduct up to $26,000 in 2015. Therefore, there is a $5,000 excess contribution that can be carried over to 2016.
- Therefore, the answer is D) $5,000.

Grace Has AGI of $60,000 in 2014 and 2015