How to treat the contribution for federal income tax purpose

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Question: Roy has an adjusted gross income of $200,000 in 2017. He donated stock in Green, Inc. (a publicly traded corporation), to the United Way, a qualified charitable organization. The stock was worth $105,000 on the date it was contributed. Roy had purchased it as an investment two years ago at a cost of $84,000.

a. What is the maximum amount that Roy can deduct as a charitable contribution in 2017? What will be the amount, if any, of charitable contribution carry forward?

b. What factors should Roy consider in deciding how to treat the contribution for Federal income tax purposes?

c. Assume Roy dies in December 2017. What advice would you give the executor of his estate with regard to possible elections that can be made relative to the contribution?

Reference no: EM131663176

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