Question
Here is Willy and Nilly's list of 2019 charitable contributions, exactly as they handed it to you in your capacity as their MFJ return preparer:
Here is Willy and Nilly's list of 2019 charitable contributions, exactly as they handed it to you in your capacity as their MFJ return preparer:
Our 2019 Charitable Contributions
• $40,000 - FMV of ABC Corp. stock donated to American Red Cross
• $6,000 – “Blue Book" retail value of 2010 pickup truck donated to Big Brothers Big Sisters of Collin County (BBBS)
• $10,000 - Used clothing, furniture, household goods donated to Goodwill Industries of North Texas
Due diligence notes:
1. Each organization named by Willy and Nilly is eligible to receive tax- deductible donations.
2. The ABC Corp. stock was donated on Sept. 1, 2019; it was inherited from Rich Uncle (died on May 30, 2019), who had bought it for $30,000 on May 1, 2019; FMV of the stock on May 30th was $35,000.
3. The pickup truck was donated on June 30, 2019; on July 15, 2019, it was sold at auction by BBBS's auctioneer-agent for $3,500; BBBS netted $3,000 after the auctioneer's fee of $500.
4. The used clothing and etc. was valued by Willy and Nilly at 50% of original cost ("Good enough for government work!" says Nilly); the approximate "thrift shop value” was $1,500.
What total noncash charitable contributions amount will you enter into your 2019 return preparation software for Willy and Nilly?
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