LaCharles Made a Charitable Contribution of Property That He Valued

question 121

Essay

LaCharles made a charitable contribution of property that he valued at $80,000.He deducted this amount as an itemized deduction on his tax return.The IRS can show that the actual value of the property is $50,000.LaCharles is in the 33% Federal income tax bracket.Determine LaCharles's amount due for both tax and any penalty.

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Definitions:

Tangible Property

Physical assets that can be seen, touched, and valued, such as real estate, equipment, or goods.

Perennial Vegetation

Plants that live for more than two years, providing long-term coverage and stability to the area in which they are grown, often used in sustainable agriculture and landscaping.

Quarried Marble

Natural stone extracted from quarries around the world used primarily in construction and art for its aesthetic qualities and durability.

Real Property

Land and anything permanently affixed to it, such as buildings, also including rights and interests in the property.