Sacha purchased land in 2010 for $35,000 that she held as a capital asset.This year,she contributed the land to the Boy Scouts of America (a charitable organization)for use as a site for a summer camp.The market value of the land at the date of contribution is $40,000.Sacha's adjusted gross income is $90,000.Assuming no special elections,Sacha's maximum deductible contribution this year is
A)$13,000.
B)$27,000.
C)$35,000.
D)$40,000.

Question

Quizplus · Accepted Answer

Sacha can deduct up to 30% of her adjusted gross income for contributions of capital gain property to a public charity, which is $27,000 (30% of $90,000).

Sacha Purchased Land in 2010 for $35,000 That She Held