Madeoff donated stock (capital gain property) to a public charity. He purchased the stock3 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 (before considering the itemized deduction phase-out)?
A) $200,000.
B) $250,000.
C) $150,000.
D) $100,000.
E) None of the choices are correct.

Question

Quizplus · Accepted Answer

The maximum charitable contribution deduction for capital gain property is 30% of AGI. Madeoff's AGI is $500,000, so his maximum deduction is $500,000 x 0.30 = $150,000.

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