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 $25,000. If this painting is immediately sold by the museum and the proceeds are placed in the general fund, Al's charitable contribution deduction is $25,000 (subject to percentage limitations).

Question

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Al's charitable contribution deduction is generally equal to the lesser of the property's fair market value or their basis in the property. In this case, since Al's basis was $25,000 and the painting was worth $40,000 when donated, his deduction is limited to $25,000. The fact that the painting is immediately sold by the museum does not affect the amount of Al's deduction.

Al Contributed a Painting to the Metropolitan Art Museum of St