During the current year, Ralph made the following contributions to the University of Oregon a qualified charitable organization): Ralph acquired the stock in Raptor, Inc., as an investment fourteen months ago at a cost of $42,000.Ralph's AGI for the year is $189,000.What is Ralph's charitable contribution deduction for the current year?

Question

During the current year, Ralph made the following contributions to the University of Oregon a qualified charitable organization):  Ralph acquired the stock in Raptor, Inc., as an investment fourteen months ago at a cost of $42,000.Ralph's AGI for the year is $189,000.What is Ralph's charitable contribution deduction for the current year?

Quizplus · Accepted Answer

Ralph can only deduct the fair market value of the stock at the time of donation, which is $94,500. This is because he has held the stock for more than one year and it has appreciated in value. His charitable contribution deduction cannot exceed 30% of his AGI, which is $56,700. However, he can carry forward any unused deduction for up to five years.

During the Current Year, Ralph Made the Following Contributions to the University