1. You donate stock (held for two years) with a FMV of $20,000 to your church. Your AGI for the same year was $50,000. What is the amount of your allowable deduction in the year of the gift?
2. All of the following statements are true EXCEPT:
A) Charitable contributions can be carried forward for up to five years.
B) Cash charitable contributions are deductible up to 50% of AGI.
C) Non-profit public hospitals are qualified public charities.
D) Donation of a $2,500 car will require a written appraisal.
3. All of the following would be considered "qualified" public charities EXCEPT:
A) Republican Campaign Committee
B) Boy Scouts of America
C) Penn State University
D) United Way
4. Lefty bought a Hank Aaron baseball card in 1995 for $200. He donated the card to the Humane Society 15 years later when the card had a FMV of $800. Lefty has an AGI of $30,000 and he plans on itemizing his deductions. What is his charitable deduction if the Humane Society can sell the card for $800?
5. ABC Corporation donated seven boxes of new jackets (from inventory) to the Salvation Army, which cost them $2,000 to manufacture two years ago. ABC Corp has a total taxable income of $100,000 and the seven boxes of jackets have a FMV of $4,000. Which of the following are true statements?
I. ABC Corp's maximum allowable charitable deduction is $10,000.
II. ABC Corp's charitable deduction for the jackets is $4,000.
III. ABC Corp's charitable deduction for the jackets is $2,000.
IV. ABC Corp will have a $2,000 carry forward charitable deduction.
A) I and II only
B) I and III only
C) I, III and IV only
D) I and IV only
Financial AdvisorAn overview of the limits and tax deductions of charitable donations.
Financial AdvisorCharitable donations can be a great financial planning tool. Here are some ways to make the most of them.
Financial AdvisorClients who wish to make donations to charity can reap an enormous tax deduction with charitable remainder trusts, but it must be set up correctly.
Personal FinanceTaxes aren't avoidable, but you shouldn't pay more than your fair share. Here are five moves you can make at year's end to lower your tax bill.
Financial AdvisorAdvisors who offer clients expertise in how to charitably donate will likely build a stronger practice and capture more business. Here's why.
Personal FinanceBeing generous has never been more (financially) rewarding!
Financial AdvisorCharitable giving can provide advisors planning opportunities with millennials. Here's why.
Financial AdvisorWith the end of year fast approaching it's time to think of ways to curb your tax expenses using different investment vehicles.
MarketsMicroeconomics deals with individual and small business economic decisions.
Personal FinanceIt's no longer a free ride, but there are still tax benefits to doing so.