Charitable contributions of property

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Charitable Contributions of Property. Blue Corporation donates the following property to Johnson Elementary School:
• XYZ Corporation stock purchased two years ago for $25,000. The stock has a $19,000 FMV on the contribution date.
• Computer equipment built one year ago at a cost of $16,000. The equipment has a $50,000 FMV on the contribution date. Blue is not in the business of manufacturing computer equipment.
• PQR Corporation stock purchased six months ago for $12,000. The stock has an $18,000 FMV on the contribution date.
The school will sell the stock and use the proceeds to renovate a classroom to be used as a computer laboratory. Blue's taxable income before any charitable contribution deduction, dividends-received deduction, or NOL or capital loss carryback is $400,000.
a. What is Blue's charitable contributions deduction for the current year?
b. What is Blue's charitable contribution carryback or carryover (if any)? In what years can it be used?
c. What would have been a better tax plan concerning the XYZ stock donation? 

Reference no: EM13224117

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