Owen wants to contribute cash or capital gain property or stock to a charitable organization this year. Assume his adjusted gross income for the year will be $150,000 and that he only plans to make one of the following donations.
If he contributes $100,000 cash to a public charity, he can deduct $ ____ this year.
If he contributes property that is worth $80,000 to a public charity, he can deduct $ _ .
Or, if he contributes publicly traded stock with a FMV of $60,000 and a basis of $40,000 to a private non-operating foundation, he can deduct $ ______ this year.

In the United States of America, tax payers get reduction in the amount of taxes that they pay when taxpayers donate money to charity. The deductions in tax depends on the charity organization the tax payer is donating to and the kind of property the tax payer is donating.

Below is how it is been deducted;

(1). As regards to public charity, only 60% can be deducted from the adjusted gross income.

(2).As regards to Capital gain property contribution to public charity, only 30% can be deducted from the adjusted gross income.

(3). As regards to Capital gain property contribution to private non operating foundation, only 20% can be

In the question above, the adjusted gross income for the year will be = $150,000 deducted from the adjusted gross income.

Therefore, for (1). 60/100 × $150,000 = $90,000.

(2). 30/100 × 150,000 = $45,000.

(3). 20/100 × 150,000 = $ 30,000.