For all of 2012, Aaron (a calendar year taxpayer) allowed the City Men's Shelter, a qualified charitable organization, to use a building he owns rent-free.The building normally rents for $12,000 a year.Aaron must report $12,000 of rent income and will be allowed a charitable contribution deduction for 2012 of $12,000.

Question

Quizplus · Accepted Answer

Allowing a charitable organization to use property rent-free does not result in taxable income or a charitable contribution deduction for the property owner.

For All of 2012, Aaron (A Calendar Year Taxpayer) Allowed