Jamie has an adjusted gross income this year of $40,000. He would like to reduce his income taxes. During the year, he plans to contribute property valued at $20,000 to the National Federation for the Blind, a qualified public charity. Which one of the following statements regarding the income tax implications for Jaime of a charitable gift is correct?     A) If Jamie gave an interest in a parcel of commercial real estate, held short term, with a fair market value of $20,000 and a basis of $15,000, he can deduct either the fair market value of the property or his basis in this property.     B) If Jamie gave a life insurance policy, with a replacement cost of $20,000, on which he has paid net premiums of $5,500, he could deduct either $20,000 or $5,500.     C) If Jamie gave a collection of first edition books in braille (which the charity would display in its collection), held long term, valued at $20,000 with a basis of $9,000, he could elect to deduct either $20,000 or $9,000.     D) If Jamie gave some stock, held long term, valued at $20,000 with a basis of $19,800, his only choice would be to limit to an annual deduction of 30% of his AGI.

SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
Publisher:Maloney
Chapter17: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 38P
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Question ID: 1251879

Jamie has an adjusted gross income this year of $40,000. He would like to reduce his income taxes. During the year, he plans to contribute property valued at $20,000 to the National Federation for the Blind, a qualified public charity.

Which one of the following statements regarding the income tax implications for Jaime of a charitable gift is correct?

 
 
A)
If Jamie gave an interest in a parcel of commercial real estate, held short term, with a fair market value of $20,000 and a basis of $15,000, he can deduct either the fair market value of the property or his basis in this property.
 
 
B)
If Jamie gave a life insurance policy, with a replacement cost of $20,000, on which he has paid net premiums of $5,500, he could deduct either $20,000 or $5,500.
 
 
C)
If Jamie gave a collection of first edition books in braille (which the charity would display in its collection), held long term, valued at $20,000 with a basis of $9,000, he could elect to deduct either $20,000 or $9,000.
 
 
D)
If Jamie gave some stock, held long term, valued at $20,000 with a basis of $19,800, his only choice would be to limit to an annual deduction of 30% of his AGI.
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