Grace has AGI of $60,000 in 2019 and 2020.She makes cash contributions to public charities of $40,000 in 2019 and $37,000 in 2020.Grace's charitable contribution carryover to 2021 is

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Quizplus · Accepted Answer

Grace's charitable contribution deduction for 2019 is limited to 60% of her AGI or $36,000 ($60,000 x 60%). This means she has a carryover of $4,000 ($40,000 - $36,000) to 2020.

In 2020, Grace's charitable contribution deduction is limited to 60% of her AGI or $36,000 again. This means she has a carryover of $1,000 ($37,000 - $36,000) to 2021.

Therefore, Grace's charitable contribution carryover to 2021 is $5,000 ($4,000 + $1,000), which is option D.

Grace Has AGI of $60,000 in 2019 and 2020