New TabAbout Us QChapter 8 Flashcar. Yahoo Search - We. How to take a scre.. G j

Question

New TabAbout Us QChapter 8 Flashcar. Yahoo Search - We. How to take a scre.. G julianna vega- Healthcare Bay eBook Itemized Deductions (LO. 4) Heather makes cash contributions during the current year of $30,000 and donates property worth $40,000 to a local hospital. She purchased the property several years ago for $32,000. Her adjusted gross income is $100,000. a. What is Heather's maximum deduction if the property is ordinary income property? Calculator Feedback Check My Work b. What is Heather's maximum deduction if the property is long-term capital gain property? Feedback

Explanation / Answer

Solution:-

(a).

Adjusted gross income = $1,00,000

If the property is ordinary income property .

= 1,00,000 * 50%

= 1,00,000 * 0.5

= $50,000

(b).

Adjusted gross income = $1,00,000

If the property is long-term capital gain property.

= $1,00,000 * 30%

= $30,000

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