E.43 Charitable/philanthropic contributions and deductions Flashcards
Understand the principles and regulations governing charitable and philanthropic contributions for tax deductions.
Which of the following is true regarding the deductibility of charitable contributions?
A. All charitable contributions are fully deductible.
B. The amount of the deduction depends on the donor’s income and the type of charity.
C. Charitable contributions are only deductible if made to religious organizations.
D. Charitable contributions are only deductible if made in cash.
B. The amount of the deduction depends on the donor’s income and the type of charity.
E.43 Charitable/philanthropic contributions and deductions
Which of the following charitable contributions is fully deductible?
A. Cash donations to a private foundation.
B. Donations of clothing and household items to a thrift store.
C. Donations of appreciated securities to a public charity.
D. Donations of services to a church.
C. Donations of appreciated securities to a public charity.
E.43 Charitable/philanthropic contributions and deductions
Sarah donated $5,000 to a private foundation this year. She is in the 35% tax bracket. How much can she deduct on her taxes for this contribution?
A. $1,750
B. $2,500
C. $3,500
D. $5,000
A. $1,750
E.43 Charitable/philanthropic contributions and deductions
Which of the following is a requirement for a charitable contribution to be deductible?
A. The contribution must be made to a qualified organization.
B. The contribution must be made in cash.
C. The contribution must be made to a religious organization.
D. The contribution must be made in excess of the donor’s income.
A. The contribution must be made to a qualified organization.
E.43 Charitable/philanthropic contributions and deductions
Mark donated $2,000 to a charity this year. He also received a benefit from the charity worth $200. How much can Mark deduct on his taxes for this contribution?
A. $2,000
B. $1,800
C. $1,600
D. $1,500
B. $1,800
E.43 Charitable/philanthropic contributions and deductions
Which of the following is an example of a charitable contribution that is not deductible?
A. A donation of clothing to a thrift store.
B. A donation of services to a charity.
C. A donation to a political organization.
D. A donation of stock to a private foundation.
C. A donation to a political organization.
E.43 Charitable/philanthropic contributions and deductions
Which of the following is true regarding the deductibility of charitable contributions for corporations?
A. All charitable contributions are fully deductible for corporations.
B. The amount of the deduction is limited to a percentage of the corporation’s income.
C. Corporations can only deduct charitable contributions made to religious organizations.
D. Corporations cannot deduct charitable contributions.
B. The amount of the deduction is limited to a percentage of the corporation’s income.
E.43 Charitable/philanthropic contributions and deductions
Tim donated a piece of land to a public charity. He purchased the land for $50,000, and its fair market value is now $100,000. How much can Tim deduct on his taxes for this contribution?
A. $50,000
B. $75,000
C. $85,000
D. $100,000
B. $75,000
E.43 Charitable/philanthropic contributions and deductions
Rebecca made a charitable contribution of $10,000 to a qualified charity. What is the maximum amount she can deduct on her taxes?
A. $10,000
B. $5,000
C. $3,000
D. $2,500
A. $10,000
E.43 Charitable/philanthropic contributions and deductions
John donated $2,500 to a charity and received a small gift worth $100 in exchange for his donation. What is the maximum amount he can deduct on his taxes?
A. $2,400
B. $2,300
C. $2,200
D. $2,100
A. $2,400
E.43 Charitable/philanthropic contributions and deductions
Linda donated a painting worth $20,000 to a public charity. What is the maximum amount she can deduct on her taxes?
A. $20,000
B. $15,000
C. $10,000
D. $5,000
A. $20,000
E.43 Charitable/philanthropic contributions and deductions
Mary made a $5,000 charitable contribution to a qualified charity and also volunteered her time at the organization. Can she deduct the value of her time on her taxes?
A. Yes, she can deduct the value of her time.
B. No, she cannot deduct the value of her time.
C. It depends on the nature of the services she provided.
D. It depends on the value of the services she provided.
B. No, she cannot deduct the value of her time
E.43 Charitable/philanthropic contributions and deductions
John donated $10,000 to a qualified charity in 2022. He also received a gift from the charity worth $2,000. How much can John deduct on his taxes?
A. $8,000
B. $10,000
C. $12,000
D. $2,000
A. 8,000
E.43 Charitable/philanthropic contributions and deductions
