Question

Remsco has taxable income of $78,000 and a charitable contribution limit modified taxable income of $81,000. Its charitable contributions for the year were $8,220. What is Remsco's current-year charitable contribution deduction and contribution carryover

Answer 1

Contribution deduction= $8,100

Contribution carryover= $100

Step-by-step explanation:

Charitable contribution deduction is limited to 10% of charitable contribution limit modified taxable income

Hence Remsco's current-year charitable contribution deduction = 81000 x 10% =8100 or 8200 which ever is less

= $ 8100

Contribution carryover = 8,200-8100

= $ 100