Ronaldo contributed stock worth $12,000 to the Children's Protective Agency, a qualified charity.He acquired the stock twenty months ago for $6,000.He may deduct $6,000 as a charitable contribution deduction (subject to percentage limitations).

Question

Quizplus · Accepted Answer

Ronaldo can deduct the fair market value of the stock at the time of the contribution, which is $12,000, not the original purchase price of $6,000, since the stock is considered long-term capital gain property.

Ronaldo Contributed Stock Worth $12,000 to the Children's Protective Agency