Ms. Eleanor Young 2622 Bayshore Drive Berkeley, CA 94709 Dear Ms. Young: I have evaluated the proposed alternatives 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. A donation of cash, the unimproved land, or the Gold stock will result in a $ Donation of the Blue Corporation stock will result in only a $ 21,390 A direct contribution of the Gold Corporation stock will be a poor is not 142,600 charitable contribution deduction. charitable contribution deduction. decision from a tax perspective in that the decline in value 142,600 If you sell the Gold stock and deductible and the amount of the charitable contribution would be $ give the proceeds to United Way, the donation of the proceeds will result in a s In addition, sale of the stock will result in a s 142,600 charitable contribution deduction. long-term capital loss. If you have capital gains of 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 $ of the capital loss this year and carry over the remaining $ loss to future years. You should make the donation in time for ownership to change hands before the end of the year. Therefore, I recommend that you notify your broker immediately so that there will be no problem in completing the donation on a timely basis. Please let me know if you have any questions or would like to discuss my recommendation and the related analysis. Thank you for consulting our firm on this matter. We look forward to serving you in the future. Sincerely, Nora Oldham, CPA Check My Work 2 more Check My Work uses remaining. L All work saved. Email Instruc