When taxpayers donate cash and capital gain property to a public charity, the AGI percentage limitation is
Question:
When taxpayers donate cash and capital gain property to a public charity, the AGI percentage limitation is applied in the following order:
A. donations to public charities are not subject to AGI limitations.
B. a 60 percent of AGI limitation is applied to the cash donation and the fair market value of the capital gain donation is subject to the lesser of a 30 percent of AGI limitation or a 50 percent of AGI limitation after subtracting the cash contributions.
C. a 30 percent of AGI limitation is applied to the cash donation and a 20 percent of AGI limitation is applied to the fair market value of the capital gain donation.
D. a 30 percent of AGI limitation is applied to the aggregate donation.
E. a 60 percent of AGI limitation is applied to the cash donation and a 20 percent of AGI limitation is applied to the fair market value of the capital gain donation.
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill