Richard donates publicly traded gold company stock with a basis of $1,000 and a fair market value of $15,000 to the college he attended, which is considered a public charity. richard has owned the shares for 10 years. how is this contribution treated on richard's tax return?

Question

Luis Morrison

Business

14 November, 02:54

Richard donates publicly traded gold company stock with a basis of $1,000 and a fair market value of $15,000 to the college he attended, which is considered a public charity. richard has owned the shares for 10 years. how is this contribution treated on richard's tax return?

+2

Answers (1)

Know the Answer?

Joaquin Baker · Answer 1

Let Contribution in tax return equal to x - y = z. Where x is the fair market value, y is the stock with a basis. Substituting these values we get $ 15,000 - $ 1,000, which makes it equal to $ 14,000. Excess of fair market oven non cash contribution can be deducted as qualified.