1) During the current year, Helen donates stock worth $50,000 to her local community college. Two years ago the stock cost Helen $40,000. Her AGI for the current year is $100,000. Beginning next year, the bulk of her income will be from tax-exempt municipal securities. Thus, she is not interested in any carryover of excess charitable contribution. What is the maximum charitable contribution deducted Helen may take this year?
2. On December 1, 2013, Rebecca Ward, a single taxpayer, comes to you for tax advice. At the end of every year, she donates $5,000 to charity. She has no other itemized deductions. This year, she plans to make her charitable donation with stock. She presents you with the following information relating to her stock investments:
Corporation FMV on Adjusted Date
Dec. 1 Basis Purchased
Sycamore $9,600 $7,800 05.22.08
Oak 2,900 3,800 09.10.09
Redwood 5,400 4,900 06.15.13
Which stock should Rebecca donate to charity? What other tax advice would you give her?