Karen,a calendar year taxpayer,made the following donations to qualified charitable organizations during the year: The land had been held as an investment and was acquired 4 years ago.Shortly after receipt,the City of Terre
Haute sold the land for $210,000.Karen's AGI is $450,000.The allowable charitable contribution deduction is:

Question

Karen,a calendar year taxpayer,made the following donations to qualified charitable organizations during the year:  The land had been held as an investment and was acquired 4 years ago.Shortly after receipt,the City of Terre
Haute sold the land for $210,000.Karen's AGI is $450,000.The allowable charitable contribution deduction is:

Quizplus · Accepted Answer

$30,000 (cash)+ $135,000 (30% × $450,000 AGI)= $165,000.The capital gain property is limited to 30% of $450,000 AGI,or $135,000.The carryover to the next five years is $75,000 [$210,000 (FMV of the land)- $135,000 (deduction allowed for the current year)].If the reduced deduction election is made,the deduction becomes $100,000 [$30,000 (cash)+ $70,000 (basis of land)].

Karen,a Calendar Year Taxpayer,made the Following Donations to Qualified Charitable