Ronald Donates Publicly Traded Microsystems Stock with a Basis of $2,000

question 34

Essay

Ronald donates publicly traded Microsystems stock with a basis of $2,000 and a fair market value of $20,000 to the local library, which is considered a public charity. Ronald has $30,000 of adjusted gross income, and he purchased the stock 15 years ago. How is this contribution treated on Ronald's tax return?

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Definitions:

Bank Statement

A summary of financial transactions that have occurred over a given period on a bank account held by a person or business with a financial institution.

Notes Receivable

Claims against debtors that are supported by formal agreements or promissory notes, specifying the amounts owed and payment terms.

Discount On Notes Receivable

An amount deducted from the face value of a note to reflect the interest revenue over the term of the note.

Notes Receivable

Short-term or long-term financial assets representing amounts owed to the company that are documented through formal agreements or promissory notes.