Your client, a carpenter, donated one of his handcrafted wooden desks to his church, a qualified public charity. The church sold the desk at an auction for $3,500, which is comparable to the standard price for the client's
Your client, a carpenter, donated one of his handcrafted wooden desks to his church, a qualified public charity. The church sold the desk at an auction for $3,500, which is comparable to the standard price for the client's
Chapter17: Property Transactions: § 1231 And Recapture Provisions
Section: Chapter Questions
Problem 47P
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Question
Your client, a carpenter, donated one of his handcrafted wooden desks to his church, a qualified public charity. The church sold the desk at an auction for $3,500, which is comparable to the standard price for the client's other woodwork. He calculated his costs as follows:
| Wood | $1,000 |
| Other materials | $300 |
| Rent for workshop | $500 |
| Time and services | $1,700 |
This is his only charitable contribution. He itemizes deductions and has an adjusted gross income of $80,000.
What is the maximum current year income tax deduction allowable for the client's charitable contribution?
A)$3,500
B)$1,800
C)$500
D)$1,300
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT