Pat gave 5,000 shares of stock in Coyote Corporation (a publicly traded corporation) to her church (a qualified charitable organization) in the current year.The stock was worth $180,000.She had acquired it as an investment four years ago at a cost of $120,000.She reported AGI of $300,000 for the year.In completing her current income tax return, how much is her current-year charitable contribution deduction?

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The correct answer is A.Pat's charitable contribution deduction is limited to 50% of her AGI, which is $150,000. However, the amount of the deduction is reduced by the amount of any gain on the sale of the stock. In this case, Pat's gain on the sale of the stock is $60,000 ($180,000 - $120,000). Therefore, Pat's charitable contribution deduction is $90,000 ($150,000 - $60,000).

Pat Gave 5,000 Shares of Stock in Coyote Corporation (A