Question

Sacha purchased land in 2010 for $35,000 that she held as a capital asset. This year, she contributed the land to the Boy Scouts of America (a charitable organization) for use as a site for a summer camp. The market value of the land at the date of contribution is $40,000. Sacha’s adjusted gross income is $90,000. Assuming no special elections, Sacha’s maximum deductible contribution this year is
A) $13,000.
B) $27,000.
C) $35,000.
D) $40,000.

Answer 1

Answer:

maximum deductible contribution this year = $27000

so correct option is B) $27,000

Explanation:

given data

capital asset = $35000

market value of the land = $40,000

gross income = $90,000

to find out

maximum deductible contribution this year

solution

we get here maximum deductible contribution this year that is express as

maximum deductible contribution this year = Adjusted gross income × capital gain property    ...............1

Limit on capital gain property is 30%

maximum deductible contribution this year = $90,000 × 30%

maximum deductible contribution this year = $27000

so correct option is B) $27,000