Assignment:
In each of the following independent cases, determine the amount of the charitable contribution and the limitation that would apply. In each case, assume that the donee is a qualified public charity.
A) Sharon donates a tract of land to a charitable organization. She has held the land for seven years. Her basis in the land is $10,000 and its FMV is $40,000.
B) Assume the same facts as Part A, except that Sharon has held the land for only 11 months and that its FMV is $23,000.
C) Jack purchases a historical document for $50,000. He donates the historical document to a charitable organization two years later. The organization plans to use it for research and study. Its FMV at the time of the donation is $100,000.
D) Assume the same facts as Part C, except that the organization plans to sell the document and put the money into an endowment fund.
E) Valerie donates some inventory to a charitable organization. The inventory is not food or clothing. The inventory is purchased for $500 and its FMV is $1200 at the time of the donation. She held the inventory for seven months.