Grace has AGI of $60,000 in 2013 and 2014.She makes cash contributions to public charities of $34,000 in 2013 and $31,000 in 2014.Grace's charitable contribution carryover to 2015 is

Question

Quizplus · Accepted Answer

Grace's charitable contributions in 2013 and 2014 exceed the maximum amount she can deduct in those years (which is 50% of her AGI or $30,000 in each year), therefore she can carry the excess contributions forward for up to five years.

The carryover amount to 2015 would be the total excess contributions in 2013 and 2014, minus the amount used as a deduction in 2014, which is:

($34,000 + $31,000) - $30,000 = $35,000 - $30,000 = $5,000

Therefore, the correct answer is D) $5,000.

Grace Has AGI of $60,000 in 2013 and 2014