George and Laura, a married couple with an adjusted gross income of $100,000, made the following contributions
Question:
George and Laura, a married couple with an adjusted gross income of $100,000, made the following contributions to qualified charitable organizations:
• $8,000 cash given to State University.
• Used personal clothing, acquired within the last two years for $6,000, donated to Goodwill. Its current fair market value is $2,000.
• Apex stock donated to their church. The stock cost $30,000 when acquired in 1990. Its current fair market value is $15,000.
• Microsoft stock donated to the Red Cross. The stock acquired in 1993 cost $4,000. Its current fair market value is $11,000.
• Laura volunteers at the local charity that feeds homeless persons. The fair value of her volunteer service was $7,000.
How much can George and Laura deduct for these charitable contributions on their current year’s tax return?
a. $8,000
b. $10,000
c. $25,000
d. $36,000
e. $50,000
Step by Step Answer:
Taxation For Decision Makers 2019
ISBN: 9781119497288
9th Edition
Authors: Shirley Dennis Escoffier, Karen A. Fortin