Donna donates stock in Chipper Corporation to the American Red Cross on September 10, 2023. She purchased the stock for $21,000 on December 28, 2022, and it had a fair market value of $30,000 when she made the donation.
Donna donates stock in Chipper Corporation to the American Red Cross on September 10, 2023. She purchased the stock for $21,000 on December 28, 2022, and it had a fair market value of $30,000 when she made the donation.
Chapter10: Deduct Ions And Losses: Certain Itemized Deduct Ions
Section: Chapter Questions
Problem 33P
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Transcribed Image Text:Donna donates stock in Chipper Corporation to the American Red Cross on September 10, 2023. She purchased
the stock for $21,000 on December 28, 2022, and it had a fair market value of $30,000 when she made the
donation.
a. What is Donna's charitable contribution deduction?
The stock is treated as ordinary income ✓ property and Donna's charitable contribution deduction is $
for tax purposes.
b. Assume instead that the stock had a fair market value of $18,000 (rather than $30,000) when it was
donated to the American Red Cross. What is Donna's charitable contribution deduction?
c. What documentation should you request from Donna to confirm the amount of her charitable contribution
deduction?
Donna needs to have documentation that the stock was
date. In addition, because the donation is over $250
acknowledgment from the charity.
donated, the date and the value at that
✓, she must have a contemporaneous written
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Publisher:
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