4. Don\'s records contain the following information: a) Donated stock having a f

Question

4. Don's records contain the following information: a) Donated stock having a fair market value of $3,600 to a qualified charitable organization. He acquired the stock five months previously at a cost of $2,400. b) Paid $700 to a church school as a requirement for the enrollment of his daughter. c) Paid $200 for annual homeowner's association dues. d) Drove 400 miles in his personal auto. The travel was directly related to volunteer services he performed for his church (actual costs were not available). How much can Don deduct as a charitable contribution?

Explanation / Answer

Charitable contribution deduction:

Stock Acquisition Cost = 2400

Volunteer Services for Church = 400 *$.14 = 56

The answer is $2456

School tuition for don's daughter and homeowners association dues are not considered for charitable contribution deduction. Moreover, the stock is held for five months so it is considered as short-term and deducted on the basis.

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