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?

A) $20,000
B) $15,000
C) $10,000
D) $7,500

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?

A) $100
B) $200
C) $400
D) $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




Answer Key

Related Articles
  1. Taxes

    Tips on Charitable Contributions: Limits and Taxes

    An overview of the limits and tax deductions of charitable donations.
  2. Taxes

    Deducting Your Donations

    Generosity may be its own reward, but some charitable giving also provides personal tax benefits.
  3. Financial Advisor

    Top Tips for Maximizing Charitable Deductions

    Charitable donations can be a great financial planning tool. Here are some ways to make the most of them.
  4. Managing Wealth

    It Is Better To Give AND Receive

    You give to benefit others, but there can be perks for you too.
  5. Financial Advisor

    Non-Cash Contribution Rules Could Cut Returns

    Higher standards for certain contributions could mean smaller deductions for you.
  6. Retirement

    Guiding Clients on Charitable Remainder Trusts

    Clients who wish to make donations to charity can reap an enormous tax deduction with charitable remainder trusts, but it must be set up correctly.
  7. Taxes

    5 Tax Moves To Make Before Year End

    Taxes 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.
  8. Taxes

    An Overview Of Itemized Deductions

    Not taking the standard deduction this year could save you hundreds of dollars.
  9. Taxes

    The Most Overlooked Tax Deductions

    The receipts you cram into your wallet could be replaced with cash come tax season.
  10. Financial Advisor

    How to Grow Your Business with Donation Strategies

    Advisors who offer clients expertise in how to charitably donate will likely build a stronger practice and capture more business. Here's why.
Trading Center