Clayton Contributes Land to the American Red Cross for Use

question 1233

Multiple Choice

Clayton contributes land to the American Red Cross for use as a future site for a new building. His AGI is $50,000. Clayton paid $20,000 for the land eight months ago but its market value at the date of contribution is
$25,000. With no special elections, Clayton's deductible contribution this year is

• A) $20,000.
• B) $18,000.
• C) $7,000.
• D) $25,000.

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Definitions:

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