Calculate the total and maximum amount

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Kelly has AGI of $100,000 in 2006. She contributes stock in Tulip Corp. (a publicly traded corp.) to a State University (a qualified charitable org.) The stock is worth $59000 & she acquired it as an investment 2 years ago at a cost of $44,000.

1. What is the total amount that kelly can deduct as a charitable contribution, assuming she carries over any disallowed contribution from 2006 to future years?

2. What is the maximum amount that kelly can deduct as a charitable contribution in 2006?

3. What factors should kelly consider in deciding how to treat the contribution for federal income tax purposes?

4. Assume Kelly dies in December 2006. What advice would you give the executor of her estate with regard to possible elections that can be made relative to the contribution?

 

Reference no: EM1362271

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