If Karl gifts appreciated stock valued at $70,000 to Ohio State University, what is the maximum charitable deduction he can claim?

If Karl gifts appreciated stock valued at $70,000 to Ohio State University, what is the maximum charitable deduction he can claim?

• A. $21,000
• B. $50,000
• C. $18,000
• D. $30,000

Answer: (C)

When a taxpayer gives appreciated stock to a qualified charitable organization, such as Ohio State University, they are generally able to claim a charitable deduction for the fair market value of the stock at the time of the gift. In this case, the appreciated stock is valued at $70,000. However, the maximum charitable deduction that Karl can claim for this gift will depend on several factors, including the type of gain that would have been taxed if he sold the stock and his adjusted gross income (AGI). For donations of appreciated stock to public charities, the deduction is usually equal to the fair market value of the stock, subject to certain limitations based on the taxpayer’s AGI. For individuals, contributions of appreciated capital gains property to public charities are typically limited to 30% of AGI if the stock is held for more than one year. If Karl’s AGI were, for example, $100,000, he could take a deduction up to $30,000 (which is 30% of $100,000) for the stock contribution. In this context, the deduction of $18,000 does not align with the 30% of AGI guideline, and $21,000, $50,000, and $30,

When a taxpayer gives appreciated stock to a qualified charitable organization, such as Ohio State University, they are generally able to claim a charitable deduction for the fair market value of the stock at the time of the gift. In this case, the appreciated stock is valued at $70,000.

However, the maximum charitable deduction that Karl can claim for this gift will depend on several factors, including the type of gain that would have been taxed if he sold the stock and his adjusted gross income (AGI). For donations of appreciated stock to public charities, the deduction is usually equal to the fair market value of the stock, subject to certain limitations based on the taxpayer’s AGI.

For individuals, contributions of appreciated capital gains property to public charities are typically limited to 30% of AGI if the stock is held for more than one year. If Karl’s AGI were, for example, $100,000, he could take a deduction up to $30,000 (which is 30% of $100,000) for the stock contribution.

In this context, the deduction of $18,000 does not align with the 30% of AGI guideline, and $21,000, $50,000, and $30,