Vinny's AGI is $250,000.He contributed $200,000 in cash to the Boy Scouts, a public charity.What is Vinny's charitable contribution deduction for AMT purposes?
A)$0
B)$50,000
C)$125,000
D)$150,000

Question

Quizplus · Accepted Answer

Vinny's charitable contribution deduction for AMT purposes is limited to 30% of his AGI, which is $75,000 ($250,000 x 30%). Since he contributed $200,000 to a public charity, he can deduct $75,000 for AMT purposes and the remaining $125,000 will carry forward to future tax years. Therefore, Vinny's charitable contribution deduction for AMT purposes is $150,000 ($75,000 + $75,000).

Vinny's AGI Is $250,000