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During 2020, Royce has an adjusted gross income (AGI) of $40,000. What is the maximum amount Royce can deduct for qualified contributions charitable made to qualified organizations if he itemizes his deductions? A. $0 B. $10,000 C. $24,000 D. $40,000

Respuesta :

The maximum amount Royce can deduct for qualified contributions charitable made to qualified organizations is Option C. $24,000.

  • The calculation is as follows;

Contributions to charity as the deduction is limited to 60% of adjusted gross income.

But qualified contributions are not subject to this limitation.

Since AGI = $40,000

So,  

Deduction as charitable contribution should be

[tex]= \$40,000 \times 60\%[/tex]

= $24,000

Learn more: brainly.com/question/16911495

Parrain

Based on Royce's Adjusted Gross Income (AGI), the amount that Royce can deduct is D. $40,000.

When a person is deducting for charity, charity contributions are capped at 60% of AGI.

If these contributions are qualified contributions however, they will not be subject to this cap and so can be deducted entirely from the AGI.

In conclusion, Royce can deduct $40,000.

Find out more about qualified contributions at https://brainly.com/question/25995915.

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