Question
In: Accounting
Calvin reviewed his cancelled checks and receipts this year for charitable contributions, which included a painting...
Calvin reviewed his cancelled checks and receipts this year for charitable contributions, which included a painting and IBM stock. He has owned the IBM stock and painting since 2005.
| Donee | Item | Cost | FMV |
| Hobbs Medical Center | IBM Stock | $9,000 | $62,000 |
| State Museum | Antique Painting | 7,000 | 4,200 |
| A needy family | Food and clothes | 800 | 480 |
| United Way | Cash | 48,000 | 48,000 |
d. Calvin’s AGI is $300,000 and Hobbs is a private nonoperating foundation.
| Charitable contribution deduction | $___________ |
| Carryover | $___________ |
e. Calvin’s AGI is $300,000 but the painting is worth $130,000.
| Charitable contribution deduction | $___________ |
| Carryover | $___________ |
Solutions
Expert Solution
Answer:-
d):-Calvin’s AGI is $300,000 and Hobbs is a private nonoperating foundation.
Given information ,
- Hobbs is a private nonoperating foundation
- So,the deduction value of AGI amount = 20%.
- 20% of AGI limit = 300,000 * 20%
= $60,000
20% of AGI limit = $60,000
50% of Agi limit = [ 300,000 * 50% ] - [ 4,200 + 48,000]
= 150,000 - 52,200
= 97,800
50% of Agi limit = $97,800
Calvin’s
can deduct = 48,000 + 4,200 + 20% of AGI limit
= 52,200 + 60,000
= 112,000
Calvin’s can deduct = $112,000
Value of stock = $62,000 - 20% of AGI limit
= 62,000 - 60,000
= 2,000
Value of stock = 2,000.
- This 20% stock value carried to next year AGI limit.
(e):-Calvin’s AGI is $300,000 but the painting is worth $130,000 .
- IBm stock value and painting worth are considered in the capital gain properties.
- Calvin’s can deduct the aggeregate value of stock = $62,000 + $130,000
= $192,000
Calvin’s can deduct the aggeregate value of stock = $192,000
Now ,30% of the AGI = 300,000 * 30%
= $90,000
30% of the AGI limit = $90,000
Remaining deduction amount @ 50% = [ 50% of AGI + 48,000 ] * 50%
= [ 150,000 + 48,000 ] * 50%
= $99,000
Remaining deduction amount = $99,000
Calvin’s deduction = 48,000 + 30% of AGI
= $138,000
Calvin’s deduction = $138,000
Remaining capital gain property = $192,000 - 90,000
= 102,000
Remaining capital gain property = $102,000
- This capital gain value carryover to next year value to the 30% of AG limit.
ekkarill92 answered 2 years agoRelated Solutions
Calvin reviewed his cancelled checks and receipts this year for charitable contributions, which included a painting...
Calvin reviewed his cancelled checks and receipts this year for
charitable contributions, which included a painting and IBM stock.
He has owned the IBM stock and painting since 2005.
Donee
Item
Cost
FMV
Hobbs Medical
Center
IBM stock
$
6,200
$
34,000
State
Museum
Antique
painting
5,600
3,360
A needy
family
Food and
clothes
520
310
United Way
Cash
20,000
20,000
Calculate Calvin's charitable contribution deduction and
carryover (if any) under the following circumstances.
(Leave no answer blank. Enter zero...
Calvin reviewed his cancelled checks and receipts this year for charitable contributions, which included a painting...
Calvin reviewed his cancelled checks and receipts this year for
charitable contributions, which included a painting and IBM stock.
He has owned the IBM stock and painting since 2005.
Donee
Item
Cost
FMV
Hobbs Medical Center
IBM stock
$
8,200
$
54,000
State Museum
Antique painting
6,600
3,960
A needy family
Food and clothes
720
430
United Way
Cash
40,000
40,000
Calculate Calvin's charitable contribution deduction and
carryover (if any) under the following circumstances.
(Leave no answer blank. Enter zero...
Calvin reviewed his cancelled checks and receipts this year for charitable contributions, which included an antique...
Calvin reviewed his cancelled checks and receipts this year for
charitable contributions, which included an antique painting and
IBM stock. He has owned the IBM stock and the painting since
2005.
Donee
Item
Cost
FMV
Hobbs Medical Center
IBM stock
$
7,200
$
44,000
State Museum
Antique painting
6,100
3,660
A needy family
Food and clothes
620
370
United Way
Cash
30,000
30,000
Calculate Calvin's charitable contribution deduction and
carryover (if any) under the following circumstances:
a) Calvin’s AGI is...
Calvin reviewed his cancelled checks and receipts this year for charitable contributions, which included an antique...
Calvin reviewed his cancelled checks and receipts this year for
charitable contributions, which included an antique painting and
IBM stock. He has owned the IBM stock and the painting since
2005.
Donee
Item
Cost
FMV
Hobbs Medical Center
IBM stock
$
5,000
$
22,000
State Museum
Painting
5,000
3,000
A needy family
Food and clothes
400
250
United Way
Cash
8,000
8,000
Calculate Calvin's charitable contribution deduction and carryover
(if any) under the following circumstances. (Leave no
answer blank. Enter...
Required information [The following information applies to the questions displayed below.] Calvin reviewed his canceled checks...
Required information [The following information applies to the
questions displayed below.]
Calvin reviewed his canceled checks and receipts this year for
charitable contributions, which included an antique painting and
IBM stock. He has owned the IBM stock and the painting since
2005.
Donee
Item
Cost
FMV
Hobbs Medical Center
IBM stock
$
6,000
$
32,000
State Museum
Antique painting
5,500
3,300
A needy family
Food and clothes
500
300
United Way
Cash
18,000
18,000
Calculate Calvin's charitable contribution deduction and...
Which of the following contributions is allowed as a charitable contribution deduction? a. Lost income associated...
Which of the following contributions is allowed as a charitable
contribution deduction? a. Lost income associated with rent free
use of a taxpayer’s property by a qualifying charity. b. Automobile
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The average annual income for a female in Wisconsin is $38,000,
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T OR F 5. If a taxpayer uses the standard deduction, current year charitable contributions may...
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5. If a taxpayer uses the standard
deduction, current year charitable contributions may be carried
forward and deducted in future years
6. A taxpayer's home is burglarized and six
items of artwork and jewelry are stolen. The taxpayer must reduce
his casualty loss deduction by $600 ($100 for each item
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