Crow Corporation, a C corporation, donated scientific property (basis of $30,000, fair market value of $50,000) to State University, a qualified charitable organization, to be used in research.Crow had held the property for four months as inventory. Crow Corporation may deduct $50,000 for the charitable contribution (ignoring the taxable income limitation).

Question

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A C corporation can deduct the lesser of the property's fair market value or its basis when donating inventory to a qualified organization. Since the property was held as inventory, the deduction is limited to the basis of $30,000, not the fair market value of $50,000.

Crow Corporation, a C Corporation, Donated Scientific Property (Basis of $30,000