Linda,who Has AGI of $120,000 in the Current Year,contributes Stock

question 79

Essay

Linda,who has AGI of $120,000 in the current year,contributes stock in Mauve Corporation (a publicly traded corporation)to the Salvation Army,a qualified charitable organization.The stock is worth $65,000,and Linda acquired it as an investment four years ago at a cost of $50,000.
a.What is the total amount that Linda can deduct as a charitable contribution,assuming she carries over any disallowed contribution from the current year to future years?
b.What is the maximum amount that Linda can deduct as a charitable contribution in the current year?
c.What factors should Linda consider in deciding how to treat the contribution for Federal income tax purposes?
d.Assume Linda dies in December of this year.What advice would you give the executor of her estate with regard to possible elections that can be made relative to the contribution?

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Definitions:

Optimists

Individuals who tend to maintain a positive outlook on life and anticipate favorable outcomes.

Consistent Losses

Repeated instances of failure or defeat, often leading to negative psychological effects like decreased motivation or self-esteem.

Optimistic Explanatory Style

A psychological attribute characterized by the tendency to attribute positive events to personal, permanent causes and negative events to external, temporary causes.

Health Problems

Issues or conditions that negatively impact an individual's physical, mental, or emotional well-being.