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Case 4: (6 questions) Albert is contemplating making a significant charitable contribution this year. He is in the highest marginal tax bracket for ordinary

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Case 4: (6 questions) Albert is contemplating making a significant charitable contribution this year. He is in the highest marginal tax bracket for ordinary income. He can either make a cash contribution or contribute shares of long held Apple stock purchased at a very low price compared to today's fair market value. What is the advantage to making the contribution with shares? If Albert really likes the Apple stock as an investment, what would you advise? Albert is contemplating making a significant contribution either this year or next year. This year Albert's income is all ordinary income, and he is in the highest individual tax bracket. Next year, Albert will no longer work. All of his income in the next year will be long term capital gain income. What year should the contribution be made (This year or next year)? Why? (Hint: refer back to the capital gain assignment and think about the tax benefit when the taxpayer has entirely capital gains) Albert is retiring this year. He will be in the highest tax bracket this year. Going forward, while he cannot completing forecast his expected income he knows that he will be in a much lower tax bracket (say 24%). Albert is also charitably minded but currently does not a pending list of bequests that have to be made this year. Further, he wants to be careful of giving all of his contributions up front and then various charities come back for more in a year or two. What technique should Albert consider to both maximize the tax benefit of a charitable contribution but retain some direction on when and what charities will receive donations? Why?

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