Final answer:
Larry can deduct the charitable contributions he made to the family in need, church, and Salvation Army, which total $3,560. This is within the 60% limit of his AGI ($61,200), but the political contribution is not deductible as a charitable donation.
Step-by-step explanation:
Larry's maximum allowable charitable contribution for deduction purposes depends on the type of contributions he has made and his Adjusted Gross Income (AGI).
In general, cash contributions to qualified organizations can be deducted up to 60% of AGI, but there are further limitations for certain types of contributions, such as to political campaigns.
The donations Larry made include:
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- $620 cash to a family in need.
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- $2,520 to a church.
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- $620 cash to a political campaign.
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- Household items valued at $420 (originally cost $1,320).
Given Larry's AGI of $61,200, his charitable contributions related to cash and household items would be deductible within the limits. However, political contributions are not deductible as charitable contributions.
Therefore, the $620 political contribution cannot be included in his charitable deduction calculation. The total deductible charitable contributions would then be:
$620 (family in need) + $2,520 (church) + $420 (household items) = $3,560
This amount is within the 60% AGI limit, which would be $36,720 ($61,200 * 60%), so the maximum allowable charitable contribution Larry can claim is $3,560 assuming all other contributions are to qualified organizations.