Reference no: EM132492979

Question 1: An individual donates artwork to San Francisco General Hospital. This was the only charitable contribution the taxpayer makes during the year. The artwork was purchased several years ago for $50,000; it is worth $140,000 at the time of the donation. The taxpayer's AGI is $160,000. Which of the following could be an accurate statement regarding the taxpayer's charitable deduction for the artwork?

Option A. The taxpayer deducts $80,000 in the current year and carries over $60,000 to the next year.

Option B. The taxpayer deducts $48,000 in the current year and carries over $2,000 to the next year.

Option C. The taxpayer deducts $48,000 in the current year and carries over $92,000 to the next year.

Option D. The taxpayer deducts $50,000 in the current year and carries over $0 to the next year.

Option E. None of the above statements could be accurate with respect to the taxpayer's charitable contribution deduction.