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Mel made the following donations to charity during 2015: Basis Fair Market Value

ID: 2474338 • Letter: M

Question

Mel made the following donations to charity during 2015: Basis Fair Market Value Used clothing of tax payer and his family $900 $300 Stock in GMC held as investment for 13 months $8,000 $7,000 Stock in UnitedCorp held as an investment 9month $9,000 $10,000 Real estate held as investment for 6 years $10,000 $25,000 The used clothing was donated to the Salvation Army; the other items of property were donated to a Methodist seminary. Disregarding percentage limitations, Mel’s charitable deduction for 2015 is: a) 42,900 b). 43,300 c) 41,300) d) 26,300 e) none of the above.

Explanation / Answer

for clothing fair market values is used=300

stock in GMC will come under long term and value taken is fair market value=7000

Stock in united corp is short term and basis valuw is used=9000

Real estate investment is long term so fair market value used=25,000

Total deductions=$41,300