Question

Determine the maximum amount of charitable deduction for each of these contributions ignoring the AGI ceiling on charitable contributions and assuming that the American Heart Association plans to sell the antique painting to fund its operations. Ray Ray has owned the painting and Coca-Cola stock since 1990.

Answer 1

The maximum charitable deduction for a donated antique painting to the American Heart Association is typically its fair market value at the time of donation, provided that the painting is a collectible intended to be sold.

Step-by-step explanation:

The student's question pertains to the determination of the maximum amount of charitable deduction for contributions, specifically an antique painting donated to the American Heart Association. Given that the painting is a collectible and the organization intends to sell it, the fair market value of the collectible at the time of the donation typically represents the maximum deductible amount. Such tangible assets can provide returns in the form of use or potential appreciation in value over time, although they may not yield a consistently high rate of return. For tax purposes, the amount of the contribution is based on the item's fair market value, but if the charity sells the item to fund operations, special rules may apply.

Answer 2

Complete question is attached in form of image.

a). Maximum amount of charitable deduction for Cash Contrbutions = 7650 + 5450

= $ 13100

a). Maximum amount of charitable deduction for Property Donations

= 15250 + 18375

= $ 33625

The amount of deduction for contribution to American Heart Association will be the amount equal to the cost of antique painting given to the american heart association.

The amount of deduction for contribution to First Methodist Church will be the amount equal to the FMV of Coca-Cola stock given to the first methodist church.

FMV stands for Fair market value.

Maximum amount of charitable deduction for Cash contribution = $ 13100 and Maximum amount of charitable deduction for Property donation = $ 33625.