Charitable Contributions And Deductions - Sample Questions 1 - 5
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