Ms. Bjorn contributed $600,000 cash to qualified public charities this year. Her AGI was $600,000. How much is Ms. Bjorn's current year charitable contribution deduction?

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Question restatement: Ms. Bjorn contributed $600,000 cash to qualified public charities this year, and her AGI is $600,000. What is her current year charitable contribution deduction?
Answer options:
- $0
- $240,000
- $360,000
- $600,000

Option 1: $0. This is incorrect because cash charitable contributions are generally deductible up to a percentage of AGI, not zero unless the taxpayer has no qualifying contributions or the AGI limits preclude any deduction, which is not the case here given the $600,000 contributed and the AGI.
Option 2: $240,000. This figure does not align with the standard 60% of AGI limit for cash donations to public charities (as of current rules). If anything, the limit would be higher, not lower, unless special rules apply, which aren’t indicated in the scenario.
Option 3: $360,000. This matches 60% of AGI (0.60 × $600,000 = $360,000), which is the applicable ceiling for cash contributions to qualified public charities for taxpayers with cap limits based on AGI. The amount deductible in the current year cannot exceed this limit.
Option 4: $600,000. This would imply deducting 100% of AGI for charitable giving, which is not permitted under the standard AGI-based limit for cash contributions to public charities. The deduction cannot exceed the 60% of AGI cap, so $600,000 would be disallowed entirely beyond that cap.

Additional nuance: If the donor had contributed more than the applicable AGI-based limit, the excess could be carried forward to future years (typically up to five years) unless there are other limitations. In this case, since $360,000 is within the 60% of AGI limit and there’s no mention of excess donations, the current year deduction would be $360,000. The interplay with potential carryforwards is relevant only if contributions exceed the permitted limit.

SP25-BL-BUS-A327-1377 Quiz 7

Ms. Bjorn contributed $600,000 cash to qualified public charities this year. Her AGI was $600,000. How much is Ms. Bjorn's current year charitable contribution deduction?

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