Consequently he wants to deduct 35000 on his 2013 tax


In December 2013, one of your clients, Tim Huffman, donated a valuable piece of art to a local charity to be auctioned at its annual fund-raising auction. When Mr. Huffman donated the art, it was appraised for $20,000. However, at the auction held on January 20, 2014, it sold for 35,000. Mr. Huffman claims that the appraisal was obviously wrong and that the value of what he donated was obviously $35,000. Consequently, he wants to deduct $35,000 on his 2013 tax return. Write a letter to Mr. Huffman discussing the tax implications of the appraisal and subsequent sale of the art he donated. Use the principles of effective document design discussed in this chapter.

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Finance Basics: Consequently he wants to deduct 35000 on his 2013 tax
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