Hannah makes the following charitable donations in the current year:

The HBM stock and the inventory were given to Hannah's church, and the baseball card collection was given to the United Way. Both donees promptly sold the property for the stated fair market value. Disregarding percentage limitations, Hannah's current charitable contribution deduction is:

Question

Hannah makes the following charitable donations in the current year:
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The HBM stock and the inventory were given to Hannah's church, and the baseball card collection was given to the United Way. Both donees promptly sold the property for the stated fair market value. Disregarding percentage limitations, Hannah's current charitable contribution deduction is:

Quizplus · Accepted Answer

The fair market value of each property donated is:
- Land: $100,000
- Building: $200,000
- HBM stock: $150,000
- Inventory: $50,000
- Baseball card collection: $50,000

Therefore, the total fair market value of the donations is $550,000.

Since the church and United Way sold the donated property at the stated fair market value, there is no reduction in the contribution deduction for the donated property.

Hannah can deduct the full fair market value of her charitable contributions, which is $550,000.

However, there may be percentage limitations that could further reduce the deduction. Without that information, we can assume that there are no percentage limitations and therefore, the current charitable contribution deduction is $550,000.

Therefore, the best choice is B.

Hannah Makes the Following Charitable Donations in the Current Year