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Floyd Norris donated land to the city of Tahlequah for a park. He had purchased it...

Floyd Norris donated land to the city of Tahlequah for a park. He had purchased it in 1970 for $10,000. It was now worth $600,000. Floyd's AGI this year is $300,000. What is the amount of Floyd's Itemized deductions?

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Answer #1

If property donated pubic charity the charity comes to 30% of AGI.Public Charity includes public organisations, hospitals,colleges,universities are always public charity.

Floyd Norris donated for Tahlequah to built a park, which means public interest and by use of public. So, its comes to 30% deduction

Floyd's AGI this year is $300,000
The property donated to city on Tahliquah means donated to government
and therefore 30% deduction of AGI comes to ($600,000 * 30%) = $180,000
(If it is a private organisation the deduction is only 20% of AGI)

Floyd's AGI = $300,000
Less: deduction =-$180,000
Net =$120,000

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