Dan contributed stock worth $16,000 to his college alma mater, a qualified charity.He acquired the stock 11 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 lesser of the fair market value or his cost basis for short-term capital gain property, which is $4,000 in this case, since he held the stock for less than a year.

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