Josh donated a painting to the local art museum. He purchased the painting twenty years ago for $34,000, and its appraised FMV at date of gift was $115,000. Which of the following statements about this donation is true?

Question

Quizplus · Accepted Answer

When donating appreciated property, the donor is allowed a charitable contribution deduction for the fair market value of the property at the date of the gift, and does not have to recognize any capital gain. Therefore, Josh would recognize no gain and is allowed a $115,000 charitable contribution deduction.

Josh Donated a Painting to the Local Art Museum