During the year, Morgan makes the following donations to his church: cash of $5,500 and stock worth $50,000. Morgan had purchased the stock six years ago for $38,000 and held it as an investment. Morgan's AGI for the year is $80,000. a.  Disregarding percentage limitations, Morgan's potential deduction is _____________. b.  In applying the percentage limitations, the current deduction for the stock is ____________. Thus, the total current deduction is ____________.

SWFT Comprehensive Vol 2020
43rd Edition
ISBN:9780357391723
Author:Maloney
Publisher:Maloney
Chapter13: Property Transact Ions: Determination Of Gain Or Loss, Basis Considerations, And Nontaxable Exchanges
Section: Chapter Questions
Problem 7BCRQ
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During the year, Morgan makes the following donations to his church: cash of $5,500 and stock worth $50,000. Morgan had purchased the stock six years ago for $38,000 and held it as an investment. Morgan's AGI for the year is $80,000.

a.  Disregarding percentage limitations, Morgan's potential deduction is _____________.

b.  In applying the percentage limitations, the current deduction for the stock is ____________. Thus, the total current deduction is ____________.

 

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