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    Charitable Contribution Deduction Computation

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    Joe Smith paid $500.00 to attend a fund raiser for a qualified charity 100 miles from home. At the fund raiser he purchased a painting at a silent auction for $1000.00. The fair market value of the painting was $250.00 and the dinner was $50.00. While at the fund raiser he met the governor and contributed $500.00 to the governor's re-election campaign. How much can Joe claim as a charitable contribution deduction? Why?

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    Solution Preview

    Joe's contribution is limited to $1,200, which is $750 for the painting (the excess of the $1,000 Joe paid for the painting over its fair market value of $250) and $450 for the dinner (the excess of the ...

    Solution Summary

    This solution discusses the portions of various charity-related costs which are tax deductible (i.e., the cost of a charitable affair, the cost of a purchase made there, mileage to get there, and a contribution to a political candidate).