Your client, a carpenter, donated one of his handcrafted wooden desks to his church, a qualified public charity. The church sold the desk at an auction for $3,500, which is comparable to the standard price for the client's
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Your client, a carpenter, donated one of his handcrafted wooden desks to his church, a qualified public charity. The church sold the desk at an auction for $3,500, which is comparable to the standard price for the client's other woodwork. He calculated his costs as follows:
| Wood | $1,000 |
| Other materials | $300 |
| Rent for workshop | $500 |
| Time and services | $1,700 |
This is his only charitable contribution. He itemizes deductions and has an adjusted gross income of $80,000.
What is the maximum current year income tax deduction allowable for the client's charitable contribution?
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- On December 27, 2019, Roberta purchased four tickets to a charity ball sponsored by the city of San Diego for the benefit of underprivileged children. Each ticket cost 200 and had a fair market value of 35. On the same day as the purchase, Roberta gave the tickets to the minister of her church for personal use by his family. At the time of the gift of the tickets, Roberta pledged 4,000 to the building fund of her church. The pledge was satisfied by a check dated December 31, 2019, but not mailed until January 3, 2020. a. Presuming that Roberta is a cash basis and calendar year taxpayer, how much can she deduct as a charitable contribution for 2019? b. Would the amount of the deduction be any different if Roberta was an accrual basis taxpayer? Explain.Dr Peter Mark is a medical doctor. He works for his own medical clinic in Sydney. Overall, Dr Peter has incurred the following costs. Advise him as to whether he can claim deductions on the following expenses. Donation of $400 to the building fund of a local public library Payment of $600 membership fees to the Medical Doctors association. Payment of $2000 for repainting the front of his medical clinic with a new type of higher quality paint to make it more attractive to walk-in patients. Payment of 1200 for a Registered Tax Accountant to manage his tax affairs.Ray Ray made the following contributions this year. Charity Property Athens Academy School United Way American Heart Association First Methodist Church Cost $ 8,050 5,850 Antique painting 15,300 Coca-Cola stock 15,250 Cash contributions Property donations Cash Cash Determine the maximum amount of charitable deduction for each of these contributions ignoring the AGI ceiling on charitable contributions and assuming that the American Heart Association plans to sell the antique painting to fund its operations. Ray Ray has owned the painting and Coca-Cola stock since 1990. FMV $8,050 5,850 76,500 22,875 Maximum Amount
- -Calvin’s AGI is $110,000, but the State Museum told Calvin that it plans to sell the painting. What is the Charitable contribution deduction?Mark Moody has adjusted gross income of $52500 this year. During the year, he gave his church $4000 cash and land having a fair market value of $30800 and a basis of $23100. The land was held long-term. A contribution of $9200 in cash was also made to a private charity. How much is the charitable contributions carryover if Mark does not elect to reduce the fair market value by the appreciation in value of the land donated? [For your answer, please use whole number (no need to round) and ignore the dollar sign and the comma.] Answer:1. Mike Lindell donated $200,000 to Habitat for Humanity, a non profit. This donation was restricted to be used for buying beds for rehabbed houses for the poor. The journal entry by Habitat for Humanity for the donation should be: 2. Habitat for Humanity received a $200,000 grant to purchase a home for the Pederson family. No variance power was given as to the use of the proceeds. At the date of contribution, write the journal entry by H for H to record the initial receipt: 3.Eastern University, a private non profit university, received the following amounts during fiscal 2020 - tuition charged. 10,000,000 - less financial aid grants to students. 3,000,000' Total receipts. = 7,000,000 How should the financial aid grants to students be reported in the statement of activities?
- Adrian contributed an antique vase he had owned for 25 years to a museum. At the time of the donation, the vase had a value of $38,000. The museum displayed this vase in the art gallery. Required: Assume that Adrian’s AGI is $75,500, and his basis in the vase is $18,000. How much may Adrian deduct? How would your answer to Part (a) change if, instead of displaying the vase, the museum sold the vase to an antique dealer?Calvin reviewed his cancelled checks and receipts this year for charitable contributions, which included an antique painting and IBM stock. He has owned the IBM stock and the painting since 2005. Donee Item Cost FMV Hobbs Medical Center IBM stock $ 8,200 $ 54,000 State Museum Antique painting 6,600 3,960 A needy family Food and clothes 720 430 United Way Cash 40,000 40,000 Calculate Calvin's charitable contribution deduction and carryover (if any) under the following circumstances. Calvin’s AGI is $129,000. Charitable contribution deduction? Carryover?Calvin reviewed his canceled checks and receipts this year for charitable contributions, which included an antique painting and IBM stock. He has owned the IBM stock and the painting since 2005. Donee Item Cost FMV Hobbs Medical Center IBM stock $ 8,800 $ 60,000 State Museum Antique painting 6,900 4,140 A needy family Food and clothes 780 470 United Way Cash 46,000 46,000 Calculate Calvin's charitable contribution deduction and carryover (if any) under the following circumstances. (Leave no answer blank. Enter zero if applicable.) d. Calvin’s AGI is $290,000 and Hobbs is a private nonoperating foundation.
- Calvin reviewed his cancelled checks and receipts this year for charitable contributions, which included an antique painting and IBM stock. He has owned the IBM stock and the painting since 2005. Donee Item Cost FMV Hobbs Medical Center IBM stock $ 7,000 $ 42,000 State Museum Antique painting 6,000 3,600 A needy family Food and clothes 600 360 United Way Cash 28,000 28,000 Calculate Calvin's charitable contribution deduction and carryover (if any) under the following circumstances. (Leave no answer blank. Enter zero if applicable.) d. Calvin’s AGI is $200,000 and Hobbs is a nonoperating private foundation. e. Calvin’s AGI is $200,000 but the painting is worth $70,000.Kristin has written acknowledgments for each of the following charitable contributions during the current year: Cash contributions to her church $1,400 Contribution of used clothes and household items in good condition to Goodwill, valued at thrift shop prices (original cost, $1,200) $250 Kristin's estimate of the value of her time donated to a local animal shelter $1,500 Cash donated to homeless people asking for money for food $95 What is Kristin's charitable contribution deduction for the current year?Calvin reviewed his canceled checks and receipts this year for charitable contributions, which included an antique painting and IBM stock. He has owned the IBM stock and the painting since 2005. Donee Item Cost FMV Hobbs Medical Center IBM stock $ 9,400 $ 66,000 State Museum Antique painting 7,200 4,320 A needy family Food and clothes 840 500 United Way Cash 52,000 52,000 Calculate Calvin's charitable contribution deduction and carryover (if any) under the following circumstances. (Leave no answer blank. Enter zero if applicable.) Calvin’s AGI is $320,000, but the painting is worth $142,000. what is the following: Charitable contribution deduction Carryover
