Question

In 2021, Remsco has taxable income of $60,000 and a charitable contribution limit modified taxable income of $72,000. Remsco donated cash of $7,500 to a qualified public charity. What is Remsco's current-year charitable contribution deduction assuming Remsco makes any elections necessary to maximize its charitable contribution deduction

Answer 1

Remsco's current-year charitable contribution deduction and carryover is :$7,200; $300.

Since the current-year deduction is limited to 10 percent  of charitable contribution charitable contribution limit modified taxable income.

Hence,

Current-year deduction:

Current-year deduction= Charitable contribution limit modified taxable ×10%

Current-year deduction=$72,000 × 10%

Current-year deduction=$7,200

Carryover:

Carryover=$7,500-$7,200

Carryover=$300

Inconclusion Remsco's current-year charitable contribution deduction and carryover is :$7,200; $300.

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