In the current year,Oriole Corporation donated a painting worth $30,000 to the Texas Art Museum,a qualified public charity.The museum included the painting in its permanent collection.Oriole Corporation purchased the painting 5 years ago for $10,000.Oriole's charitable contribution deduction is $30,000 (ignoring the taxable income limitation).

Question

Quizplus · Accepted Answer

The charitable contribution deduction is equal to the fair market value of the donated painting, which in this case is $30,000. This is true regardless of the purchase price of the painting.

In the Current Year,Oriole Corporation Donated a Painting Worth $30,000