During the current year, Ralph made the following contributions to the University of Oregon (a qualified charitable organization):
Ralph acquired the stock in Raptor, Inc., as an investment fourteen months ago at a cost of $42,000. Ralph's AGI for the year is $189,000. What is Ralph's charitable contribution deduction for the current year?

Question

Quizplus · Accepted Answer

Ralph's deduction for the contribution of the Raptor, Inc. stock is limited to 30% of his AGI, which is $56,700 (30% of $189,000). Since the value of the stock is $113,000, which exceeds the deduction limit, Ralph can carry forward and use the excess contribution over the next five tax years. Therefore, Ralph's charitable contribution deduction for the current year is $56,700.

During the Current Year, Ralph Made the Following Contributions to the University