Question

Jaylen made a charitable contribution to his church in the current year. He donated common stock valued at $33,000 (acquired as an investment in 2005 for $13,000). Jaylen's AGI in the current year is $75,000. What is his allowable charitable contribution deduction? How are any excess amounts treated?

Answer 1

Answer:

Amount of deduction is $22500

Explanation:

given data

donated common stock value = $33,000

investment  =  $13,000

AGI = $75,000

solution

as we know that public charities is deductible = 30% of individual contribution base

and carried over for =  5 years  

and  contribution base is  adjust gross income get without regard taking any net operate loss carry back to tax year

Carry over amount  = donated - Amount of deduction   ............1

Carry over amount = $33,000 - ( $75000 ×30% )

Carry over amount =  $10500

so here Carry back will be $0.