Question

Of the following, which is not an issue when considering whether to deduct the adjusted basis or the fair market value of property contributed to a charitable organization?

The current market rate of interest.
	B.	The fair market value of the donated property.
	C.	The donor’s current and projected adjusted gross income for the 5 years after the contribution.
	D.	The capital gains rate in effect at the time of the transfer.

Answer 1

Answer: D. The capital gains rate in effect at the time of the transfer.

The capital gains rate in effect is not an issue when considering whether to deduct the adjusted basis or the fair market value of property contributed to a charitable organization, because at the time of the transfer of property to a charitable organization, it does not generate any capital gain.

The options 'a', 'b', and 'c' are considered when considering whether to deduct the adjusted basis or the fair market value of a property contributed to a charitable organization.

________________________________________________________