D is corrent. The requirement is to determine the maximum amount of properly substantiated charitable contributions that Willard could claim as an itemized deduction for 2012. Willard gave $25,000 to his church during 2012 and had a $15,000 charitable contribution carryover from 2011, resulting in a total of $40,000 of contributions. Since an individual’s deduction for charitable contributions cannot exceed an overall limitation of 50% of adjusted gross income, Willard’s charitable contribution deduction for 2012 is limited to ($60,000 AGI x 50%) = $30,000. Since Willard’s 2012 contributions will be deducted before his carryforward from 2011, Willard will carry over $10,000 of his 2011 contributions to 2013.
A is incorrect. A total of $30,000 can be deducted for 2012.
A is incorrect. A total of $30,000 can be deducted for 2012.
A is incorrect. A total of $30,000 can be deducted for 2012.
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