Problem $10-34($LO$.6,8)$

Ramon had AGI of $$180,000$ in $2023.$ He is considering making a charitable contribution this year to the American Heart Association, a qualified charitable organization. Determine the current allowable charitable contribution deduction in each of the following independent situations, and indicate the treatment for any amount that is not deductible currently. Identify any planning ideas to minimize Ramon's tax liability.

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a$.$ A cash gift of $$95,000.$

In the current year, Ramon may deduct $fill in the blank $575$e$1207405$afc$6\_1$

$95,000$

since his charitable contribution is limited to $fill in the blank $575$e$1207405$afc$6\_2$

$.$

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b$.$ A gift of OakCo stock worth $$95,000$ on the contribution date. Ramon had acquired the stock as an investment two years ago at a cost of $$84,000.$

The stock's value for determining the contribution is $fill in the blank $229$f$84$f$7$af$91052\_1$

$95,000$

$.$ The deduction for $2024$ is $fill in the blank $229$f$84$f$7$af$91052\_2$

$.$ The remaining $fill in the blank $229$f$84$f$7$af$91052\_3$

can be carried forward

for fill in the blank $229$f$84$f$7$af$91052\_5$

$5$

years.

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c$.$ A gift of a painting worth $$95,000$ that Ramon purchased three years ago for $$60,000.$ The charity has indicated that it would sell the painting to generate cash to fund medical research.

The contribution is valued at $fill in the blank $4$c$251$c$076021$fcf$\_1$

$.$ The amount deductible in the current year is $fill in the blank $4$c$251$c$076021$fcf$\_2$

$.$

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d$.$ Ramon has decided to make a cash gift to the American Heart Association of $$113,000.$ However, he is considering delaying his gift until $2024$ when his AGI will increase to $$300,000$ and he will be in the $32\%$ income tax bracket, an increase from his $2023$ income tax bracket of $24\%.$

Assume a $6\%$ discount rate. The present value factors, at a $6\%$ discount rate, are as follows:

Year PV Factor at $6\%$

$10\mathrm{.}9434$

$30\mathrm{.}8396$

$50\mathrm{.}7473$

If required, round your final answers to the nearest dollar.

Ramon asks you to determine the tax savings from the tax deduction in present value terms if he were to make the gift in $2023$ rather than delay the gift until $2024.$

Total present value of tax savings from the tax deduction if made this year: $fill in the blank cd$91$d$504$c$019049\_1$

Total present value of tax savings from the tax deduction if made next year: $fill in the blank cd$91$d$504$c$019049\_2$

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