In the current year, Oriole Corporation donated a painting worth $30,000 to the Texas Art Museum, a qualified public charity. The museum included the painting in its permanent collection. Oriole Corporation purchased the painting five years ago for $10,000. Oriole's charitable contribution deduction is $30,000 (ignoring the taxable income limitation).

Question

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Oriole Corporation can deduct the fair market value of the painting at the time of the donation, which is $30,000, since it was donated to a qualified public charity and used in a manner related to the charity's tax-exempt purpose (included in the museum's permanent collection).

In the Current Year, Oriole Corporation Donated a Painting Worth