Madeoff donated stock (capital gain property)to a public charity. He purchased the stock three years ago for $100,000, and on the date of the gift, it had a fair market value of $200,000. What is his maximum charitable contribution deduction for the year related to this stock if his AGI is $500,000?
A)$100,000
B)$200,000
C)$150,000
D)$250,000
E)None of the choices are correct.

Question

Quizplus · Accepted Answer

The maximum charitable contribution deduction for the year related to this stock is 30% of his AGI ($500,000) since it is a capital gain property donated to a public charity. 
30% of $500,000 = $150,000 
Therefore, his maximum charitable contribution deduction for the year related to this stock is $150,000.

Madeoff Donated Stock (Capital Gain Property)to a Public Charity