Question

Maple Corp. owns several pieces of highly valued paintings that are on display in the corporation's headquarters. This year, it donated one of the paintings valued at $100,000 (adjusted basis of $25,000) to a local museum for the museum to display. What is the amount of Maple Corp's charitable contribution deduction for painting (assuming income limitations do not apply?

Answer 1

Answer:

$100,000

Explanation:

If the individual transfers personal property to a tax-exempt entity and the corporation uses the asset in a similar way to its tax-exempt intent, the individual is entitled to subtract the property's fair value.

in this scenario, Maple Corp. has the right to deduct $100,000 (market value of painting) from his taxable income.