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10 February, 11:52

Remsco has taxable income of $61,000 and a charitable contribution limit modified taxable income of $72,500. Its charitable contributions for the year were $7,540. What is Remsco's current-year charitable contribution deduction and contribution carryover

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  1. 10 February, 12:41
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    Remsco's current-year charitable contribution deduction is $7,250

    Contribution carryover is $ 290

    Explanation:

    Taxable income = $61,000

    Charitable contribution limit modified taxable income = $72,500

    Charitable contributions for the year = $7,540

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

    Remsco's current-year charitable contribution deduction = $72,500 x 10%

    = $7,250

    Therefore, contribution carryover = $7,540 - $7,250 = $ 290
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