Of the income received by the Atom Trust this year, 60% constituted municipal bond interest. Atom's trustee also made a $100,000 gift to the United Fund, a qualifying charity. The charitable deduction associated with this gift is limited to $60,000.

Question

Quizplus · Accepted Answer

The charitable deduction limit for a trust's contribution to a qualifying charity is generally based on a percentage of the trust's adjusted gross income (AGI), not on the percentage of income from a specific source like municipal bond interest. The specific limit can vary, but the fact that 60% of the trust's income is from municipal bonds does not directly limit the charitable deduction to $60,000.

Of the Income Received by the Atom Trust This Year