During the Current Year, Hom Donates a Sculpture That Cost

question 18

Essay

During the current year, Hom donates a sculpture that cost $1,000 to a museum for exhibition.The sculpture's fair market value was $1,700 on the date of the donation, and Hom's adjusted gross income is $40,000.
a.Assume Hom held the sculpture for 4 months and the $700 ($1,700 − $1,000) of appreciation is a short-term capital gain.Calculate the amount of his itemized deduction for the contribution.
b.Assume Hom held the sculpture for 2 years and the $700 appreciation is a long-term capital gain.Calculate the amount of his itemized deduction for the contribution.

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