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 zero if applicable.)

d. Calvin’s AGI is $100,000 and Hobbs is a nonoperating private foundation.

e. Calvin’s AGI is $100,000 and the painting is worth $10,000.

Solutions

Expert Solution

d. Answer -


Charitable contribution deduction	$31000
Carryover	$2000

Explanation:

The IBM stock is capital gain property but because the Donee is a private non-operating foundation, the deduction for the value of the stock is subject to a 20% of AGI limitation.

Hence, Calvin can deduct the lesser of

(1) The value of the stock up to the 20% AGI limit ($20000) or

(2) The remaining amount of deduction to reach the 50% limit ($50000 - $3000 - $8000 = $39000)

Hence, Calvin can deduct $31,000 this year consisting of cash of $8,000, painting of $3,000, and the stock of $20000.

The remaining value of the stock $2000 ($22000 - $20000) is carried over to next year subject to the 20% of AGI limit.

e. Answer -


Charitable contribution deduction	$38000
Carryover	$2000

Explanation:

FMV changes to $10000 property type also change to capital gain property.

So,

The IBM stock is capital gain property and the painting is also capital gain property.

Hence, Calvin can only deduct the value of the stock subject to the lesser of

(1) The value of the stock up to the 30% AGI limit ($100000 * 30% = $30000) or

(2) The remaining amount of deduction to reach the 50% limit. ($50000 - $8000 = $42000)

Hence, Calvin can deduct $38000 this year consisting of cash of $8000, painting and the stock of $30000.

The remaining value of the stock $200

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

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 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...

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...

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 mileage incurred by the taxpayer in rendering services to a qualifying charity. c. The value of time or services rendered to a charitable organization. d. All of the above. e. None of the above.

The following revenue and expense figures relate to the first year of the rodeo. Receipts Contributions...

The following revenue and expense figures relate to the first year of the rodeo. Receipts Contributions from sponsors $22,000 Receipts from ticket sales $28,971 Share of concession profits $1,513 Sale of programs $600 Total receipts $53,084 Expenses Livestock contractor $26,000 Prize money $21,000 Contestant hospitality $3,341* Sponsor signs for arena $1,900 Insurance $1,800 Ticket printing $1,050 Sanctioning fees $925 Entertainment $859 Judging fees $750 Port-a-potties $716 Rent $600 Hay for horses $538 Programs $500 Western hats to first 500 children...

Which would increase U.S. GDP? Group of answer choices An increase in charitable contributions by U.S....

Which would increase U.S. GDP? Group of answer choices An increase in charitable contributions by U.S. citizens A garage sale with all used items An increase in prices in the foreign market None of the above The average annual income for a female in Wisconsin is $38,000, while for a male it is $45,000. If prices rise by 2% next year and salaries of both females and males rise by 2% we can expect Group of answer choices No change...

T OR F 5. If a taxpayer uses the standard deduction, current year charitable contributions may...

T OR F 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 stolen). 7. Interest paid on home equity debt is not deductible if the proceeds from the debt are used to pay off the taxpayer's credit card debt....

§In its first year, Barsky Corporation made charitable contributions totaling $30,000. The corporation’s taxable income before...

§In its first year, Barsky Corporation made charitable contributions totaling $30,000. The corporation’s taxable income before any charitable contribution deduction was $250,000. In its second year, Barsky made charitable contributions of $15,000 and earned taxable income before the contribution deduction of $300,000.Compute Barsky’s allowable charitable contribution deduction and its final taxable income for its first year. §Compute Barsky’s allowable charitable contribution deduction and its final taxable income for its second year.

Subjects