Your client has an adjusted gross income this year of $40,000. She would like to reduce her income taxes. She plans to contribute $20,000 during the year to the American Cancer Society, a qualified public charity. To maximize the current year income tax deduction, which of the following is the most appropriate property for the client to transfer to the charity?

Individual Income Taxes
43rd Edition
ISBN:9780357109731
Author:Hoffman
Publisher:Hoffman
Chapter10: Deductions And Losses: Certain Itemized Deductions
Section: Chapter Questions
Problem 36P
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Your client has an adjusted gross income this year of $40,000. She would like to reduce her income taxes. She plans to contribute $20,000 during the year to the American Cancer Society, a qualified public charity. To maximize the current year income tax deduction, which of the following is the most appropriate property for the client to transfer to the charity?

 
A)Some stock, held short term, valued at $20,000 with a basis of $8,000
 
B)A stamp collection, held long term, valued at $20,000 with a basis of $9,000, which the American Cancer Society will dispose of upon receipt
 
C)A life insurance policy, with a replacement cost of $20,000, on which she has paid net premiums of $5,500
 
D)An interest in a parcel of commercial real estate, held long term, with a fair market value of $20,000 and a basis of $15,000
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