Leona sells land held as an investment (basis of $20,000; fair market value of $200,000) to her church for $20,000. Leona is not allowed a charitable deduction for income tax purposes since she recovered her cost of $20,000.

Question

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Leona can claim a charitable deduction for the difference between the fair market value and the sale price, as she sold the land at a bargain price to a qualified organization.

Leona Sells Land Held as an Investment (Basis of $20,000;