Solution-Discussing the tax implications of the appraisal

Discussing the tax implications of the appraisal

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Reference no: EM131003870

In December 2013, one of your clients, Tim Huffman, donated a valuable piece of art to a local charity to be auctioned at its annual fund-raising auction. When Mr. Huffman donated the art, it was appraised for $20,000. However, at the auction held on January 20, 2014, it sold for 35,000. Mr. Huffman claims that the appraisal was obviously wrong and that the value of what he donated was obviously $35,000. Consequently, he wants to deduct $35,000 on his 2013 tax return. Write a letter to Mr. Huffman discussing the tax implications of the appraisal and subsequent sale of the art he donated. Use the principles of effective document design discussed in this chapter.

Reference no: EM131003870

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Discussing the tax implications of the appraisal

Reference no: EM131003870

Reference no: EM131003870

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