During 2014, Hom donates a sculpture that cost $1,000 to a museum for exhibition. The sculpture's fair market value was $1,500 on the date of the donation, and Hom's adjusted gross income is $40,000.
a.If Hom had held the sculpture for 4 months and the $500 ($1,500 - $1,000) of appreciation would have been a short-term capital gain, calculate the amount of his itemized deduction for the contribution.
b.If Hom had held the sculpture for 2 years and the $500 gain would have been a long-term capital gain, calculate the amount of his itemized deduction for the contribution.

Question

During 2014, Hom donates a sculpture that cost $1,000 to a museum for exhibition. The sculpture's fair market value was $1,500 on the date of the donation, and Hom's adjusted gross income is $40,000.
a.​If Hom had held the sculpture for 4 months and the $500 ($1,500 - $1,000) of appreciation would have been a short-term capital gain, calculate the amount of his itemized deduction for the contribution.
b.​If Hom had held the sculpture for 2 years and the $500 gain would have been a long-term capital gain, calculate the amount of his itemized deduction for the contribution.

Quizplus · Accepted Answer

The Answer of During 2014, Hom donates a sculpture that cost $1,000 to a museum for exhibition. The sculpture's fair market value was $1,500 on the date of the donation, and Hom's adjusted gross income is $40,000.
a.​If Hom had held the sculpture for 4 months and the $500 ($1,500 - $1,000) of appreciation would have been a short-term capital gain, calculate the amount of his itemized deduction for the contribution.
b.​If Hom had held the sculpture for 2 years and the $500 gain would have been a long-term capital gain, calculate the amount of his itemized deduction for the contribution.

During 2014, Hom Donates a Sculpture That Cost $1,000 to a Museum