Agnes is retired and has only a $12,000 annual pension as income.In 2018, Agnes' aunt dies and leaves her land worth $1.2 million.Agnes sees no need for the land and donates it immediately to a qualified public charity.Agnes may deduct a $1.2 million charitable contribution on her 2018 tax return.

Question

Quizplus · Accepted Answer

Agnes can only deduct charitable contributions up to 50% of her adjusted gross income (AGI) for the year, with the excess carried forward for up to five years. Her AGI is $12,000, so she can only deduct $6,000 in 2018.

Agnes Is Retired and Has Only a $12,000 Annual Pension