In 2017, Johnson makes the following charitable donations: Basis Fair Market Val

Question

In 2017, Johnson makes the following charitable donations:

                                                                                                Basis               Fair Market Value

Cash donation to church                                                         $10000            $10000

Unimproved land to the city of New York, New York                        20000             60000

The land had been held as an investment and was acquired 10 years ago. Shortly after receipt, the city of New York sold the land for $60000. If Johnson’s AGI is $100000, the allowable charitable contribution deduction is:

a. $40000

b. 70000

c. 34000

d. 33600

e. Some other amount__________

Explanation / Answer

answer is option 70000

Cash donation to church (Fair market value ) 10000

Unimproved land to the city of New York, New York   (Fair market value ) 60000

allowable charitable contribution deduction = 10000+60000 = 70000

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