Question

Larry recorded the following donations this year:

$500 cash to a family in need
$2,400 to a church
$500 cash to a political campaign
To the Salvation Army household items that originally cost $1,200 but are worth $300.
What is Larry's maximum allowable charitable contribution if his AGI is $60,000?

A. $2,900.

B. $1,000.

C. $2,700.

D. $4,600.

E. None of these.

Answer 1

Larry's maximum allowable charitable contribution is the lesser of 60% of his AGI or the amount of his total donations. In this case, Larry's maximum allowable charitable contribution is $3,700.

Step-by-step explanation:

The maximum allowable charitable contribution for Larry depends on his AGI (Adjusted Gross Income) and the type of donation. In this case, Larry's maximum allowable charitable contribution is the lesser of 60% of his AGI or the amount of his total donations.

Let's calculate:

60% of $60,000 = $36,000

Amount of total donations: $500 + $2,400 + $500 + $300 = $3,700

Since $3,700 is less than $36,000, Larry's maximum allowable charitable contribution is $3,700. Therefore, none of the provided options (A, B, C, D, E) is correct.