Ramon had AGI of $122,000 in 2020. 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. a. A cash gift of $61,000. In the current year, Ramon may deduct $ 61,000 since his charitable contribution is limited to $ 73,200 Feedback Check My Work A charitable contribution is defined as a gift made to a qualified organization. The potential charitable contribution deduction is the total donations, both money and property, that qualify for the deduction. b. A gift of OakCo stock worth $61,000 on the contribution date. Ramon had acquired the stock as an investment two years ago at a cost of $54,900. 61,000. The deduction for 2020 is $ 36,600 . The remaining The stock's value for determining the contribution is $ 24,400 can be carried forward for 5 years. The contribution is valued at $ 54,900 . The amount deductible in the current year is $ 54,900 Feedback Check My Work Correct d. Ramon has decided to make a cash gift to the American Heart Association of $85,400. However, he is considering delaying his gift until next year when his AGI will increase to $300,000 and he will be in the 32% income tax bracket, an increase from his current-year 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% 0.9434 1 3 0.8396 5 0.7473 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 this year, rather than delay the gift until next year. 20,400 X Total present value of tax savings from the tax deduction if made this year: Total present value of tax savings from the tax deduction if made next year: $ 25,660 X Scott and Laura are married and will file a joint tax return. Scott has a sole proprietorship (not a "specified services" business) that generates qualified business income of $300,000. The proprietorship pays W-2 wages of $40,000 and holds qualified property with an unadjusted basis of $10,000. Laura is employed by a local school district. Their taxable income before the QBI deduction is $386,600 (this is also their modified taxable income). a. Determine Scott and Laura's QBI deduction, taxable income, and tax liability for 2020. QBI deduction $ 40,000 X Taxable income $ 386,600 x Tax liability 72,943 x b. After providing you with the original information in the problem, Scott finds out that he will be receiving a $6,000 bonus in December 2020 (increasing their taxable income before the QBI deduction by this amount). Redetermine Scott and Laura's QBI deduction, taxable income, and tax liability for 2020. QBI deduction 40,000 x Taxable income $ 352,600 x Tax liability $ 74,863 X c. What is the marginal tax rate on Scott's bonus? Enter the percent to one decimal place. 21 X % Ramon had AGI of $122,000 in 2020. 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. a. A cash gift of $61,000. In the current year, Ramon may deduct $ 61,000 since his charitable contribution is limited to $ 73,200 Feedback Check My Work A charitable contribution is defined as a gift made to a qualified organization. The potential charitable contribution deduction is the total donations, both money and property, that qualify for the deduction. b. A gift of OakCo stock worth $61,000 on the contribution date. Ramon had acquired the stock as an investment two years ago at a cost of $54,900. 61,000. The deduction for 2020 is $ 36,600 . The remaining The stock's value for determining the contribution is $ 24,400 can be carried forward for 5 years. The contribution is valued at $ 54,900 . The amount deductible in the current year is $ 54,900 Feedback Check My Work Correct d. Ramon has decided to make a cash gift to the American Heart Association of $85,400. However, he is considering delaying his gift until next year when his AGI will increase to $300,000 and he will be in the 32% income tax bracket, an increase from his current-year 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% 0.9434 1 3 0.8396 5 0.7473 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 this year, rather than delay the gift until next year. 20,400 X Total present value of tax savings from the tax deduction if made this year: Total present value of tax savings from the tax deduction if made next year: $ 25,660 X Scott and Laura are married and will file a joint tax return. Scott has a sole proprietorship (not a "specified services" business) that generates qualified business income of $300,000. The proprietorship pays W-2 wages of $40,000 and holds qualified property with an unadjusted basis of $10,000. Laura is employed by a local school district. Their taxable income before the QBI deduction is $386,600 (this is also their modified taxable income). a. Determine Scott and Laura's QBI deduction, taxable income, and tax liability for 2020. QBI deduction $ 40,000 X Taxable income $ 386,600 x Tax liability 72,943 x b. After providing you with the original information in the problem, Scott finds out that he will be receiving a $6,000 bonus in December 2020 (increasing their taxable income before the QBI deduction by this amount). Redetermine Scott and Laura's QBI deduction, taxable income, and tax liability for 2020. QBI deduction 40,000 x Taxable income $ 352,600 x Tax liability $ 74,863 X c. What is the marginal tax rate on Scott's bonus? Enter the percent to one decimal place. 21 X %