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Dear Mas Voung: Thum coluhted the proposed altematives for your current year-end contribution to the United Way. I recommend that you sell the Gold Corporation

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Dear Mas Voung: Thum coluhted the proposed altematives for your current year-end contribution to the United Way. I recommend that you sell the Gold Corporation stock and donate the proceeds to the United Way. The four alternatives are discussed below. cisintabte contritbution deduction. Dention of the Blue Corporation stock will result in only as charitable contribution deduction. A direct contribution of the Gold Corporatian stock will be a decision from a tax perspective in that the decline in value deductible and the amount of the charitable contr bution would be 4 . If you sel the Gold stock chartable contribution long-term capital loss, If you have capitai gains of or more this vear, vou can use the entire loss in camputing your current taxable income. If rou have no capital of the capital loss this year and carry over the remaining s loss to futorn year. You should make the do nation in time for ownership to change hands before the end of the year. Therefore, I recommend that you neaty vour broker inmediately so that there will be no problem in completing the donation on a timely basis. Pioase let me know if you have any questions or would like to discuss my recommendation and the related analysis. Thank you for contulting our firm on this matter, We look forward to serving you in the future. Ginverely. Problem 10-36 (Algorithmic) (L0,6,8) the 248 marginal tas bracket, is considering the following alternatives for satisfying the contribution. Beanor has asked you to heip her decide which of the potential contributions liated above will be most advantageous tax-wise fvaluate the four alternatives and complete a letter to Eleanor. Detwrinat the amoint of the chartable contribution for each option. SWFT, LLP 5191 Natorp Boulevard Mason, OH 45040

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