Ronaldo contributed stock worth $12,000 to the Children's Protective Agency, a qualified charity.He acquired the stock 20 months ago for $7,000.He may deduct $7,000 as a charitable contribution deduction (subject to percentage limitations).

Question

Quizplus · Accepted Answer

Ronaldo can deduct the fair market value of the stock at the time of the contribution, which is $12,000, not the cost basis of $7,000, assuming the stock was a long-term capital asset (held for more than one year).

Ronaldo Contributed Stock Worth $12,000 to the Children's Protective Agency