This Year Darcy Made the Following Charitable Contributions

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The Answer is The charitable deduction is $21,000 for the painting and $40,000 overall.

\begin{array}{c}\begin{array}{lll}\text {Description}\\text {(1) $ \mathrm{AGI} $}\\text {(2) $ 60 \% $ contributions}\\text {(3) $ 60 \% \mathrm{AGI} $ contribution limit}\\text {(4) Allowable 60\% deductions}\\text {(5) $ 50 \% $ contributions}\\text {(6) $ 50 \% \mathrm{AGI} $ contribution limit}\\text {(7) Allowable 50\% deductions}\\text {(8) $ 30 \% $ contributions}\\text {(9) $ 30 \% $ AGI contribution limit}\\text {(10) Remaining 50\% AGI contribution limit}\\text {limit}\\text {(11) Allowable 30\% deductions}\\text {Deductible charitable contributions}\end{array}\begin{array}{r}\text { Amount } \\$ 80,000 \8,000\\underline{48,000} \ 8,000 \11,000 \32,000 \11,000\45,000 \\underline{24,000 }\ 21,000 \\\underline{21,000 }\ \$ 40,000 \end{array}\begin{array}{lll}\text {Explanation}\\\text {Cash contribution}\ (1) × 60 \% \\text {Lesser of (2) or (3)}\\text { IBM stock and clothes }\ [(1) ×50 \%]-(4) \\text {Least of (5) or (6)}\\text { painting }\(1) × 30 \% \ (6)-(7) \\\text {Least of (8), (9), or (10)}\ (4)+(7)+(11) \end{array}\end{array}

The stock and clothes are not subject to the 30 percent AGI limit because these are ordinary income properties (basis exceeds its value so neither is capital gain property).The painting is long-term tangible personal property apparently related to the purpose of the charity.The deduction this year is $40,000, consisting of cash of $8,000, IBM stock of $10,500, clothes of $500, and the painting of $21,000.The remaining value of the painting, $24,000 ($45,000 − $21,000), is carried over to next year, subject to the 30 percent of AGI limit.

This Year Darcy Made the Following Charitable Contributions

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