Charitable Contribution Carryovers. Bonnie's charitable contributions and AGI for the past 4...

Question:

Charitable Contribution Carryovers. Bonnie's charitable contributions and AGI for the past 4 years were as follows: AGI: $50,000 (2012); $55,000 (2013); $58,000 (2014); $60,000 (2015);

and Contributions subject to the 50% limitation: $40,000 (2012); $29,000 (2013); $25,000 (2014);

and $10,000 (2015).

What is the amount of the charitable deduction for each year and the order in which the deduction and carryovers are used?

Charitable Distribution:

Amount deducted from the income of the individual or business providing to the tax benefit is known as charitable distribution. It can be in the form of cash or property. While calculating the income tax, charitable distribution is deducted from the sources' income. The charity receipt must be attached to the amount specified according to the laws of income tax.

Answer and Explanation:

Year AGI Contribution AGI @50% Net Contribution Carrying Over
2012 $50,000 40,000 25,000 $...

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Average Tax Rate: Definition & Formula

from Business Law: Help and Review

Chapter 23 / Lesson 15
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