2026 S-29 (1 point).
TP owned unimproved land which she purchased 10 years ago. TP’s adjusted basis in the land was $20,000. On April 1, Year 1, TP donated the land to a qualified charitable organization. At the time of the donation, the fair market value of the land was $70,000. In Year 1, TP’s adjusted gross income is $100,000.
What is the amount of charitable deduction that TP will be able to use in Year 1 for donating the land?
$70,000
$30,000
$20,000
Zero
None of the above
Points Awarded: $30,000.
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S-29: Why $30,000
The land is long-term capital gain property (held 10 years, appreciated from $20,000 to $70,000), donated to a public charity. For gifts of appreciated capital gain property to a 50%-limit (public) charity, the deduction is normally based on FMV, but it's capped at 30% of AGI for the year — not the usual 60% that applies to cash gifts.
30% × $100,000 AGI = $30,000 deductible in Year 1.
(She could instead elect to reduce the gift to basis — $20,000 — and use the 50%/60% AGI limit, but that election isn't the default and isn't what's being tested here; the standard FMV/30%-of-AGI answer is $30,000.)
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(1/1) 2026 S-30 (1 point).
TP owned unimproved land which she purchased 10 years ago. TP’s adjusted basis in the land was $20,000. On April 1, Year 1, TP donated the land to a qualified charitable organization. At the time of the donation, the fair market value of the land was $70,000. In Year 1, TP’s adjusted gross income is $100,000.
What is the amount of charitable donation that will carryforward?
$70,000
$40,000
$20,000
Zero
None of the above
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S-30: Why $40,000 carries forward
Her total charitable contribution amount (the deductible FMV of the gift) is $70,000. She was only able to use $30,000 of it in Year 1 because of the 30%-of-AGI ceiling.
$70,000 total − $30,000 used = $40,000 carryforward
This carries forward up to 5 additional years, subject each year to the same 30%-of-AGI limit for that type of property, until it's fully absorbed or expires.
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