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 this year 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 this year is:

Quizplus · Accepted Answer

For land held as an investment, the allowable charitable contribution deduction is limited to 30% of AGI. 
Total donations: $200,000 + $5,000 + $10,000 + $50,000 = $265,000 
30% of AGI: 0.30 x $450,000 = $135,000 
Since the value of the land is greater than the 30% limit, it can be carried forward for up to 5 years. 
So the allowable deduction for this year is $135,000 (30% of AGI) + $30,000 (max for cash donations) = $165,000.

Karen, a Calendar Year Taxpayer, Made the Following Donations to Qualified