Reference no: EM132174058

Question - Martin, a single taxpayer with no dependents, contributes a painting to an art museum in the current year (2018). The museum is thrilled to get the painting because it fits perfectly into its impressionist collection. Martin purchased the painting 10 years ago for $50,000. At the time of the donation, the painting is worth $60,000. Martin has adjusted gross income this year (2018) is $100,000 and his only other itemized deduction is an annual $10,000 for state taxes. Martin plans to retire next year. A significant portion of his income will be from tax-exempt bonds so he expects his AGI in future years will be only $15,000. Martin wants to know what his options are regarding his charitable contribution deduction and how much he should claim as a deduction this year. Compute the present value of each alternative using a 6 percent discount rate.