Ms.Bjorn's only contribution this year was a donation of marketable securities (FMV $600,000; tax basis $273,000)to a public charity.Her AGI was $814,000.Which of the following statements is true?

Question

Quizplus · Accepted Answer

The deduction for donations of appreciated securities to a public charity is limited to 30% of AGI. 30% of $814,000 is $244,200, but since the FMV of the securities is $600,000, the deduction is limited to $407,000 (50% of AGI). The excess $193,000 can be carried over to future years.

MsBjorn's Only Contribution This Year Was a Donation of Marketable