In the current year, Oriole Corporation donated a painting worth $75,000 to the Texas Art Museum, a qualified public charity. The museum included the painting in its permanent collection. Oriole Corporation purchased the painting 5 years ago for $25,000. Oriole's charitable contribution deduction is $25,000 (ignoring the taxable income limitation).

Question

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The charitable contribution deduction would be for the fair market value of the painting at the time of the donation, which was $75,000, not the original purchase price of $25,000. Therefore, Oriole's charitable contribution deduction would be $75,000.

In the Current Year, Oriole Corporation Donated a Painting Worth