Problem:
On December 5th, 2006, Rebecca Ward, a single taxpayer, comes to you for tax advice. At the end of every year she donates $3800 to charity. She has no other itemized deductions. This year, she plans to make her charitable donations with stock. She presents you with the following information relating to her stock investment:
Corporation FMV 12/1 Adjusted Date
basis Purchased
Sycamore 9,600 7,800 5/22/02
Oak 2,900 3,800 9/10/03
Redwood 5,400 4,900 6/15/05
Which stock should Rebecca donate to charity? What other tax advice would you give her?