Armando has AGI of $80,000 and makes the following charitable contributions:
?
- $\$ 10,000$ cash to American Heart Society.
- $\$ 18,000$ cash to Redemption Church.
$\$ 24,000$ worth of AOL stock acquired in 2005 with a basis of $\$ 10,000$ to Upper State University.
What is Armando's maximum charitable deduction in the current year?

Question

Quizplus · Accepted Answer

Armando can deduct up to 60% of his AGI for cash contributions to public charities, which is $48,000 (60% of $80,000). The total cash contributions are $28,000, which is within the limit. For the stock, he can deduct the fair market value of $24,000, but the total deduction cannot exceed 50% of AGI for non-cash contributions, which is $40,000. Therefore, the maximum deduction is $28,000 (cash) + $20,000 (part of stock within the 50% limit), totaling $48,000.

Armando Has AGI of $80,000 and Makes the Following Charitable $10,000\$ 10,000$10,000

Armando Has AGI of $80,000 and Makes the Following Charitable $\$ 10,000$