Question

Ignacio and Perla are married and both are government employees. They contribute 22) money to various organizations each year and file a joint return. Their adjusted gross income for 2018 is $100,000. They contributed to the following organizations in 2018:
$3,500 to the World Wildlife Foundation
$10,000 to the Salvation Army
$2,000 to a local city council candidate
$11,000 to a breast cancer research hospital
Donated clothing to Goodwill. (Ignacio purchased the items for $375, but the thrift shop value of the same items at a local second-hand store is equal to S60.)
How much can Ignacio and Perla deduct as charitable contributions for the year 2018?
A) $26,560.
B) $25,710
C) $26,500.
D) S24,560.

Answer 1

Answer: D. $24,560

Explanation:

The contributions to charity and the clothing to Goodwill can be considered charitable deductions but the goodwill clothing must be value at second-hand value.

= Donation to WWF + Salvation Army + Breast Cancer research + Goodwill

= 3,500 + 10,000 + 11,000 + 60

= $24,560