Use the following research database (CCH, Checkpoint, & BNA) for your research. Research the issues and write

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Use the following research database (CCH, Checkpoint, & BNA) for your research. Research the issues and write a letter to Mr. Garcia with your conclusions. What should he do? Garcia also donated $10,000 to a qualified Mexican public charity located in Matamoros, Mexico, and he wants to know whether this contribution is deductible What documentation is required to support the charitable contributions in US and Mexico?

Mark Garcia, a single individual, wants to make a $40,000 charitable contribution to the United Way to support the financial literacy program. Although he does not have the cash available, he is thinking about selling an investment and donating the proceeds. He owns 1,000 shares of ABC stock (FMV $40,000; A/B $30,000) that he purchased eight months ago and 500 shares of XYZ stock (FMV $40,000; A/B $18,000) that he purchased three years ago. Both companies are listed on the New York Stock Exchange. Assume he does not plan to sell any other capital assets during the year (2016). Mr. Garcia expects the two investments to yield similar returns in the future, and he is not partial towards keeping either stock.

Mr. Garcia expects his adjusted gross income to be $140,000:

-Pension $90,000

- U.S. investment income (interest, dividends, rents) $20,000

- Mexican investment income (interest, dividends, rents) $12,000

- Social Security $18,000

Garcia also donated $10,000 to a qualified Mexican public charity located in Matamoros, Mexico, and he wants to know whether this contribution is deductible.