In 2014, Gray Corporation, a calendar year C corporation, has a $75,000 charitable contribution carryover from a gift made in 2009. Gray is contemplating a gift of land to a qualified charity in either 2014 or 2015. Gray purchased the land as an investment five years ago for $100,000 (current fair market value is $250,000). Before considering any charitable deduction, Gray projects taxable income of $1,000,000 for 2014 and $1,200,000 for 2015.
Should Gray make the gift of the land to charity in 2014 or in 2015?
Note: If an amount is zero, enter "0".
a. If Gray makes the gift of the land to charity in 2014:
The amount of the deduction would be $ and the corporation is able to use $ of the $75,000 carryover. The excess of $ would carryover to 2015.
b. If Gray makes the gift of the land to charity in 2015:
In 2014, the corporation is able to use $ of the $75,000 carryover. In 2015, the amount of the deduction would be $ and the excess of $ would carryover to 2016.
c. Therefore, Gray should make the gift of the land to charity in Select20142015Item 7 .