Dan contributed stock worth $16,000 to his college alma mater,a qualified charity.He acquired the stock eleven months ago for $4,000.He may deduct $16,000 as a charitable contribution deduction (subject to percentage limitations).

Question

Quizplus · Accepted Answer

Dan can only deduct the fair market value of the stock if it is considered long-term capital gain property, which requires holding it for more than one year. Since he held the stock for only eleven months, it is considered short-term, and he can only deduct his cost basis of $4,000.

Dan Contributed Stock Worth $16,000 to His College Alma Mater,a