Pat gave 5,000 shares of stock in Coyote Corporation (a publicly traded corporation) to her church (a qualified charitable organization) in the current year. The stock was worth $180,000 and she had acquired it as an investment four years ago at a cost of $120,000. She reported AGI of $300,000 for the year. In completing her current income tax return, how much is her current-year charitable contribution deduction?
A) $90,000
B) $120,000
C) $150,000
D) $180,000
E) None of the above

Question

Quizplus · Accepted Answer

The correct answer is A.The charitable contribution deduction is limited to 50% of AGI for contributions of appreciated property. In this case, the appreciated amount is $180,000 - $120,000 = $60,000. Therefore, the maximum charitable contribution deduction is $60,000 x 50% = $30,000. However, since Pat's AGI is $300,000, the charitable contribution deduction is limited to $150,000.

Pat Gave 5,000 Shares of Stock in Coyote Corporation (A