Emma purchased investment land in 2012 for $46,000.At the end of 2014,she was approached by the local Girl Scout organization in which she had been an active troop leader,about donating the land for a summer camp site.Emma agreed and deeded the land to the Girl Scouts for their camp in February 2015.The fair market value of the land at the end of 2014 was $55,000 and in February 2015 was $56,000.Emma's adjusted gross income was $100,000 for 2014 and $110,000 for 2015.Emma expects her AGI to decrease to $10,000 in 2016 because most of her future retirement income will be from tax-exempt sources.What is the maximum amount Emma can deduct for 2015 if this is her only itemized deduction?

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$46,000.Emma should electto use the $46,000 basis; the 50% of AGI limit would then apply but with no carryover to future years.Her deduction for capital gain property is limited to $33,000 ($110,000 x .3 = $33,000),30% of AGI if fair market value is used in 2015 with a carryover of the remaining $23,000 limited to 30% of AGI in future years ($10,000 x .3 = $3,000).

Emma Purchased Investment Land in 2012 for $46,000