# Helga had AGI of \$135,000 in 2018. She donated corporate stock with a basis of \$28,000 to a qualified charitable organization on April 3, 2018.a.  What is the amount of Helga's deduction assuming that she purchased the stock on June 15, 2017, and the stock had a fair market value of \$26,000 when she made the donation?Helga's deduction is \$.b.  Assuming that she purchased the stock on January 15, 2017, and the stock had a fair market value of \$33,000 when she made the donation, Helga's deduction is \$.c.  Assuming that she purchased the stock on January 15, 2018, and the stock had a fair market value of \$29,000 when she made the donation to the charity, Helga's deduction is \$

Question

Helga had AGI of \$135,000 in 2018. She donated corporate stock with a basis of \$28,000 to a qualified charitable organization on April 3, 2018.

a.  What is the amount of Helga's deduction assuming that she purchased the stock on June 15, 2017, and the stock had a fair market value of \$26,000 when she made the donation?
Helga's deduction is \$.

b.  Assuming that she purchased the stock on January 15, 2017, and the stock had a fair market value of \$33,000 when she made the donation, Helga's deduction is \$.

c.  Assuming that she purchased the stock on January 15, 2018, and the stock had a fair market value of \$29,000 when she made the donation to the charity, Helga's deduction is \$

Step 1

Part (a) Basis = \$ 28,000; Fair Value = \$ 26,000

Period of holding: From June 15, 2017 till April 3, 2018. It's not even a year. Hence, it doesn't qualify for long term holding. It's a short term holding.

Hence, short term capital gain deduction = minimum (Basis, Fair Value) = minimum (28000, 26000) = \$ 26,000

Step 2

Part (b)

Period of holding: From January 15, 2017 to April 3, 2018; it's mor ethan a year, hence it's a lo...

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