Patrick's records for the current year contain the following information: - He donated stock having a fair market value of $5,000 to a qualified charitable organization. Patrick acquired the stock two years ago at a cost of $3,000.
- He donated 20 hours of his time as a professional plumber to a qualified charitable organization. He bills his time to his customers at $50 per hour.
- He also donated $7,500 cash to a qualified charitable organization.
Patrick's adjusted gross income for the year is $100,000. What is the amount of his charitable contribution deduct

Question

Quizplus · Accepted Answer

Patrick can deduct the fair market value of the stock ($5,000) and the cash donation ($7,500). The value of his time as a plumber is not deductible. Therefore, the total deductible amount is $5,000 + $7,500 = $12,500.

Patrick's Records for the Current Year Contain the Following Information