Simone donated a landscape painting (tangible capital gain property) to a library, a public charity. She purchased the painting five years ago for $50,000, and on the date of the gift, it had a fair market value of $200,000. What is her maximum charitable contribution deduction for the year if her AGI is $300,000 (before considering the itemized deduction phase-out)?
A) $100,000
B) $200,000
C) $90,000 if the library uses the painting in its charitable purpose
D) $150,000
E) None of the above

Question

Quizplus · Accepted Answer

The painting is appreciated capital gain property given to a public charity. However, because it is also tangible personal property the donation is FMV only if it is related to the charitable use or purpose. If so, the deduction is limited to 30% of AGI. If not, the deduction is basis limited to 50% of AGI.

Simone Donated a Landscape Painting (Tangible Capital Gain Property) to a Library