Ramon had AGI of $141,000 in 2018. 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.

a. A cash gift of $70,500.

In the current year, Ramon may deduct $_______ since his charitable contribution is limited to $_______ .

d. Ramon has decided to make a cash gift to the American Heart Association of $98,700. 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%

1 0.9434

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 delaying the gift until next year. For purposes of this analysis, ignore the potential impact of the overall limitation on certain itemized deductions.

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: $_______