Remsco has taxable income of $60,000 and a charitable contribution limit modified taxable income of $72,000. Its charitable contributions for the year were $7,500. What is Remsco's current-year charitable contribution deduction and contribution carryover?
A)$6,000 current-year deduction; $1,500 carryover.
B)$7,500 current-year deduction; $0 carryover.
C)$1,200 current-year deduction; $6,300 carryover.
D)$7,200 current-year deduction; $300 carryover.

Question

Quizplus · Accepted Answer

The deduction is limited to 10% of the charitable contribution limit modified taxable income, which is $7,200 (10% of $72,000). The remaining $300 is carried over to the next year.

Remsco Has Taxable Income of $60,000 and a Charitable Contribution