H sold a parcel of real estate worth $45,000 to his favorite qualified charity for $30,000.H had a tax basis in the unimproved parcel of $36,000.What are the amounts of H's charitable contribution and his gain or loss recognized, respectively, on this sale?

Question

Quizplus · Accepted Answer

H's charitable contribution is the amount that he contributed to the qualified charity, which is $15,000 ($45,000 - $30,000).

To determine if H recognized a gain or loss on the sale, we need to compare the amount realized ($30,000) to his tax basis in the property ($36,000).

Since the amount realized is less than H's tax basis, he recognizes a loss. The amount of the loss is the difference between the tax basis and the amount realized, which is $6,000 ($36,000 - $30,000).

Therefore, the answer is D: $15,000 and $6,000.

H Sold a Parcel of Real Estate Worth $45,000 to His