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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