Al contributed a painting to the Metropolitan Art Museum of St.Louis, Missouri.The painting, purchased six years ago, was worth $40,000 when donated, and Al's basis was $20,000.If this painting is immediately sold by the museum and the proceeds are placed in the general fund, Al's charitable contribution deduction is $20,000 (subject to percentage limitations).

Question

Quizplus · Accepted Answer

Al's charitable contribution deduction is equal to the fair market value of the painting at the time of the donation, which was $40,000. The fact that the museum immediately sold the painting and placed the proceeds in the general fund does not impact Al's deduction. Therefore, his deduction is $40,000, not $20,000.

Al Contributed a Painting to the Metropolitan Art Museum of St.Louis