In December of each year, Mike Pong contributes 10% of her gross income to the United Way (a 50% organization). Mike, who is in the 24% marginal tax bracket, is considering the following alternatives for satisfying the contribution.

Fair Market Value (1) Cash donation $23,000

(2) Unimproved land held for six years ($3,000 basis) $23,000

(3) Blue Corporation stock held for eight months ($3,000 basis) $23,000

(4) Gold Corporation stock held for two years ($28,000 basis) $23,000

Mike has asked you to help her decide which of the potential contributions listed above will be most advantageous tax-wise. Evaluate the four alternatives and complete a letter to Eleanor.

Determine the amount of the charitable contribution for each option.

Charitable Contribution Cash donation )= 23,000

Unimproved land held for six years ($3,000 basis)= 23,000

Blue Corporation stock held for eight months ($3,000 basis)= 3,000

Gold Corporation stock held for two years ($28,000 basis)= 23,000

Fill in the blanks and explain all steps.

In addition, addition sale of the stock will result in a $fill in the blank	?
long-term capital loss. If you have capital gains of $fill in the blank	?
or more this year, you can use the entire loss in computing your current taxable income. If you have no capital gains this year, you can deduct $fill in the blank	?

of the capital loss this year and carry over the remaining $fill in the blank

?

loss to future years.