Question
Ron Peterson, age 43, and Sandy Peterson, age 41, are married with two children, Michael, age 12, and Victoria, age 8, who has been blind
Ron Peterson, age 43, and Sandy Peterson, age 41, are married with two children, Michael, age 12, and Victoria, age 8, who has been blind since her birth. Ron is an architect and general partner with XYZ partnership. Sandy is self-employed as an attorney and works out of a home office. Her home office is exclusively and regularly used for business, and the home office is her principal place of business. Their information forthe tax year 2022 is asfollows:
Adjusted gross income $217,300
Itemized deductions (including qualified residential mortgage interest, taxes paid, and charitable contributions) $33,000
Personal and dependency exemptions (taxpayers and children) 4
Early in the current year, Sandy’s father died. Sandy is the sole beneficiary of her father’s entire estate. The estate is presently in the probate process. Sandy’s mother, Lisa, age 68, has moved in with them but provides her own support. She was married to Sandy’s father when he died earlier this year. This is Ron’s second marriage. He makes monthly support payments to his former wife and his daughter. Because both Ron and Sandy are considered to be self-employed, they make quarterly estimated tax payments each year to cover both their income tax and self-employment tax obligations.
Ron gave a painting to the local art museum in the current year. The painting had a fair market value of $34,000. He paid $16,500 for it five months ago. The museum will display the painting among its collection. Based on the information provided in the case scenario for Ron and Sandy Peterson, what is Ron's charitable contribution deduction?
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