Identify which of the following statements is true.
A)When a corporation donates appreciated capital gain property to a charity, the amount of the contribution deduction generally equals the property's FMV.
B)When a corporation donates appreciated capital gain property to a private nonoperating foundation, the corporation's contribution is limited to the property's FMV minus the ordinary gain that would have resulted from the property's sale.
C)When a corporation contributes appreciated property to a charity, the charitable contribution deduction is the property's FMV or adjusted basis, depending on the election made by the taxpayer.
D)All of the above are false.

Question

Quizplus · Accepted Answer

When a corporation donates appreciated capital gain property to a charity, the amount of the contribution deduction generally equals the property's FMV. B is false because private nonoperating foundations are subject to additional limitations. C is false because the adjusted basis cannot be used as the basis for the deduction. D is incorrect because A is true.

Identify Which of the Following Statements Is True