Vinny's AGI is $250,000. He contributed $200,000 in cash to the Boy Scouts, a public charity. What is Vinny's charitable contribution deduction for AMT purposes?
A)$0
B)$50,000
C)$75,000
D)$125,000

Question

Quizplus · Accepted Answer

The maximum charitable contribution deduction for AMT purposes is limited to 30% of AGI. In this case, 30% of Vinny's AGI is $75,000. However, Vinny contributed $200,000 which is greater than $75,000. Therefore, he can deduct up to $125,000 ($200,000 - $75,000) for AMT purposes.

Vinny's AGI Is $250,000