Simone donated a landscape painting (tangible capital gain property) to a library, a public charity. She purchased the painting five years ago for $50,000, and on the date of the gift, it had a fair market value of $200,000. What is her maximum charitable contribution deduction for the year if her AGI is $300,000 (before considering the itemized deduction phase-out)?
A) $100,000.
B) $200,000.
C) $90,000 if the library uses the painting in its charitable purpose.
D) $150,000.
E) None of the choices are correct.

Question

Quizplus · Accepted Answer

If the library uses the painting in its charitable purpose, Simone can deduct the full fair market value of $200,000, but the deduction is limited to 30% of her AGI, which is $90,000.

Simone Donated a Landscape Painting (Tangible Capital Gain Property) to a Library