3. Caitlyn is considering making a large charitable deduction this year. Her filing status is MFJ and their AGI is $60,000. She is deciding between these options. o Donating cash to her local church of $40,000. o Donating painting to her church. FMV of the painting is 40,000 and her basis in the painting is $100. She purchased it three years ago. The church will sell the painting. o Donating painting to the community art museum. FMV of the painting is $40,000 and her basis in the painting is $100. She purchased it three years ago. The art museum will display the painting. Evaluate all three of the options. What is the charitable contribution amount for each item? Which item would you recommend Caitlyn contribute and why?
3. Caitlyn is considering making a large charitable deduction this year. Her filing status is MFJ and their AGI is $60,000. She is deciding between these options. o Donating cash to her local church of $40,000. o Donating painting to her church. FMV of the painting is 40,000 and her basis in the painting is $100. She purchased it three years ago. The church will sell the painting. o Donating painting to the community art museum. FMV of the painting is $40,000 and her basis in the painting is $100. She purchased it three years ago. The art museum will display the painting. Evaluate all three of the options. What is the charitable contribution amount for each item? Which item would you recommend Caitlyn contribute and why?
Chapter26: Tax Practice And Ethics
Section: Chapter Questions
Problem 30P
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Transcribed Image Text:3. Caitlyn is considering making a large charitable deduction this year. Her filing
status is MFJ and their AGI is $60,000. She is deciding between these
options.
o Donating cash to her local church of $40,000.
o Donating painting to her church. FMV of the painting is 40,000 and
her basis in the painting is $100. She purchased it three years ago.
The church will sell the painting.
o Donating painting to the community art museum. FMV of the painting
is $40,000 and her basis in the painting is $100. She purchased it three
years ago. The art museum will display the painting.
Evaluate all three of the options. What is the charitable contribution amount for
each item? Which item would you recommend Caitlyn contribute and why?
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