For the current year, Sheila Jones had adjusted gross income of $100,000. During the year, she contributed $6,000 to her church and an additional $3,000 to qualified charities. She also contributed religious artwork with a fair market value of $60,000 and a basis of $20,000 to her church. The church intends to display the religious artwork in the church foyer. If Sheila chooses to itemize her deductions, what is the amount of her deductible charitable contribution?
A) $9,000.
B) $20,000.
C) $39,000.
D)$49,000.

Question

Quizplus · Accepted Answer

Sheila's deductible charitable contribution is $39,000. This is calculated as follows:Cash contributions: $6,000 + $3,000 = $9,000Fair market value of religious artwork: $60,000Less: Basis of religious artwork: $20,000Deductible amount of religious artwork: $40,000Total deductible charitable contribution: $9,000 + $40,000 = $49,000However, the maximum charitable contribution deduction for individuals is 50% of AGI. Sheila's AGI is $100,000, so her maximum charitable contribution deduction is $50,000. Therefore, her deductible charitable contribution is limited to $49,000.

For the Current Year, Sheila Jones Had Adjusted Gross Income