| Tax Quiz |
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Contract All | Expand All (or click on questions to reveal individual answers) 1: Donations of cash are normally allowed as a deduction. Is there a limit on the amount of cash you can deduct? You are normally allowed to deduct up to 50% of your adjusted gross income charitable contributions made to a qualifying organization. Donations of appreciated stock owned more than one year are normally allowed as a deduction. 2: The amount you can deduct is your basis in the stock or the average value of the stock on the date of the donation? You are normally allowed to deduct the average value of the stock on the date of the contribution made to a qualifying organization.
3: The deductible amount of the donation of stock is limited to what percent of your adjusted gross income? The allowable amount of the gift of appreciated stock to a qualifying organization is normally limited to 30% of your adjusted gross income.
Congress changed some rules on contributions to encourage relief for the victims of Hurricane Katrina. These changes apply to contributions made between August 28, 2005 and December 31, 2005. 4: What is the limit of deductible cash contributions made to a Hurricane Katrina relief organization? You would be allowed to deduct up to 100% of your adjusted gross income
5: What is the limit of deductible cash contributions made to a non Hurricane Katrina relief organization but to a qualifying charitable organization? You would be allowed to deduct up to 100% of your adjusted gross income. The qualifying organization does not have to be to a Katrina relief organization
6: What is the limit of deduction for appreciated stock held more than one year made to a Hurricane Katrina relief organization? You would be allowed to deduct up to 30% of your adjusted gross income. To qualify for the 100% limit, the contribution needs to be a cash contribution.
7: What is the limit of deduction for appreciated stock held more than one year made to a non Hurricane Katrina relief organization but to a qualifying charitable organization? Again, you would be allowed to deduct up to 30% of your adjusted gross income. To qualify for the 100% limit, the contribution needs to be a cash contribution.
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