Zeke made the following donations to qualified charitable organizations during the year: The used clothing was donated to the Salvation Army;the other items of property were donated to Eastern State University.Both are qualified charitable organizations.Disregarding percentage limitations,Zeke's charitable contribution deduction for the year is:
A)$43,350.
B)$56,250.
C)$59,250.
D)$60,375.
E)None of these.

Question

Zeke made the following donations to qualified charitable organizations during the year:  The used clothing was donated to the Salvation Army;the other items of property were donated to Eastern State University.Both are qualified charitable organizations.Disregarding percentage limitations,Zeke's charitable contribution deduction for the year is:
A)$43,350. 
B)$56,250. 
C)$59,250. 
D)$60,375. 
E)None of these.

Quizplus · Accepted Answer

For the used clothing and the ABC stock,fair market value controls in determining the amount of the deduction.The ABC stock was held long term,but it was not appreciated property.The MNO stock would not yield a long-term capital gain if sold because of the holding period.Consequently,it is ordinary income property for charitable contribution purposes and the appreciation cannot be claimed.The real estate meets the definition of capital gain property.Thus,$375 + $10,875 + $15,000 + $30,000 = $56,250.

Zeke Made the Following Donations to Qualified Charitable Organizations During