Carly donated inventory (ordinary income property) to a church. She purchased the inventory last month for $100,000, and on the date of the gift, it had a fair market value of $92,000. What is her maximum charitable contribution deduction for the year related to this inventory if her AGI is $200,000?

Question

Quizplus · Accepted Answer

The charitable deduction for ordinary income property is the lesser of FMV or basis limited to 50% of AGI.

Carly Donated Inventory (Ordinary Income Property) to a Church