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:

Auditory Ossicles

The three small bones in the middle ear that transmit sound vibrations from the eardrum to the inner ear.

Endolymph

Fluid found within the membranous labyrinth of the inner ear.

Perilymph

The fluid that lies between the membranous and bony labyrinth of the inner ear, aiding in hearing and balance.

Oval Window

A membrane-covered opening that leads from the middle ear to the inner ear, vibrating in response to sound waves and transferring those vibrations into the cochlea.