Ramon had AGI of $180,000 in 2014. He contributed stock in Charlton, Inc. (a publicly traded corporation), to the American Heart Association, a qualified charitable organization. The stock was worth $105,000 on the date it was contributed. Ramon had acquired it as an investment two years ago at a cost of $84,000.
a. Assuming that Ramon carries over any disallowed contribution from 2014 to future years, what is the total amount he can deduct as a charitable contribution?
b. What is the maximum amount Ramon can deduct as a charitable contribution in 2014?
c. What factors should Ramon consider in deciding how to treat the contribution for Federal income tax purposes?
d. Assume that Ramon dies in December 2014. What advice would you give the executor of his estate with regard to possible elections that can be made relative to the contribution?

  • CreatedMay 25, 2015
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