Question

Which of the following is a true statement?

A. the deduction of cash contributions to public charities is limited to 30 percent of AGI.

B. the deduction of capital gain property to private nonoperating foundations is limited to 50 percent of AGI.

C. the deduction of capital gain property to public charities is limited to 20 percent of AGI.

D. the deduction of cash contributions to private nonoperating foundations is limited to 30 percent of AGI.

E. None of these is true.

Answer 1

The correct statement is that the deduction of cash contributions to public charities is limited to 30 percent of AGI.

Step-by-step explanation:

The correct statement is A. The deduction of cash contributions to public charities is limited to 30 percent of AGI.

According to the US federal tax code, individuals are allowed to deduct cash contributions to public charities up to 30 percent of their adjusted gross income (AGI). This means that if their AGI is $100,000, the maximum deduction for cash contributions to public charities would be $30,000.

None of the other options are true statements. The deduction of capital gain property to private nonoperating foundations is limited to 20 percent of AGI, not 50 percent (option B). The deduction of capital gain property to public charities is limited to 30 percent of AGI, not 20 percent (option C). And the deduction of cash contributions to private nonoperating foundations is limited to 30 percent of AGI, not 50 percent (option D).