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label Accounting
account_circle Unassigned
schedule 1 Day
account_balance_wallet $5

Spencer, who itemizes deductions, had adjusted gross income of $60,000 for the current year.

The following additional information is available for the year:

Cash contribution to church: $ 4,000
Purchase of art object at church bazaar: 1,200 (with a fair market value of $800 on the date of purchase)
Donation of used clothing to Salvation Army: 600 (fair value evidenced by receipt received)

What is the maximum amount Spencer can claim as a deduction for charitable contributions in the current year?

Sep 5th, 2015

Thank you for the opportunity to help you with your question!

Well, first we look at what is fully deductible

The cash contribution is 100% fully deductible

The donation of used salvation army is 100% fully deductible (because the evidence showed fair value).

But the purchase of the art object is not. This is due to the fact that the fair market value is $800.

So, you take the 1,200 and subtract 800$ from it.


Therefore $400 dollars is deductible.

Then you just need to add up the three things that is 100% deductible


I noticed you did not want the answer, so, I'll leave the last step for you!

Please let me know if you need any clarification. I'm always happy to answer your questions. Leave a positive review if you are happy!
Sep 5th, 2015

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