An individual donates artwork to San Francisco General Hospital. This was the only charitable contribution the taxpayer makes during the year. The artwork was purchased several years ago for $50,000; it is worth $140,000 at the time of the donation. The taxpayer's AGI is $160,000. Which of the following could be an accurate statement regarding the taxpayer's charitable deduction for the artwork? a. The taxpayer deducts $80,000 in the current year and carries over $60,000 to the next year. b. The taxpayer deducts $48,000 in the current year and carries over $2,000 to the next year. c. The taxpayer deducts $48,000 in the current year and carries over $92,000 to the next year. d. The taxpayer deducts $50,000 in the current year and carries over $0 to the next year. e. None of the above statements could be accurate with respect to the taxpayer's charitable contribution deduction.

Question

Ethen Strong

Business

3 October, 08:49

An individual donates artwork to San Francisco General Hospital. This was the only charitable contribution the taxpayer makes during the year. The artwork was purchased several years ago for $50,000; it is worth $140,000 at the time of the donation. The taxpayer's AGI is $160,000. Which of the following could be an accurate statement regarding the taxpayer's charitable deduction for the artwork? a. The taxpayer deducts $80,000 in the current year and carries over $60,000 to the next year. b. The taxpayer deducts $48,000 in the current year and carries over $2,000 to the next year. c. The taxpayer deducts $48,000 in the current year and carries over $92,000 to the next year. d. The taxpayer deducts $50,000 in the current year and carries over $0 to the next year. e. None of the above statements could be accurate with respect to the taxpayer's charitable contribution deduction.

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Answers (1)

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Frances Frazier · Answer 1

a. The taxpayer deducts $80,000 in the current year and carries over $60,000 to the next year.

Explanation:

AGI $160,000;

Tax charged for the current year according to IRS on property = 50%

50% of 160,000 = $80,000

Donation worth = 140,000

Carried next year = 140,000-80,000 = $60,000