Jim wants to make $25,000 of contributions for the year and he comes to you as h

Question

Jim wants to make $25,000 of contributions for the year and he comes to you as his tax advisor for advice on the best way to make the contributions. Jim is in the top tax braket of 39.6% and he expects to continue to stay in the top tax bracket. he tells you that he has the following assets he can make the contribution with

Cash $10,000

IBM sock with a basis of $10,000 and a FMV of $6000 that he bought 3 years ago

Apple stock with basis of $6000 and FMV of $10,000 that he bought 2 years ago

Inventory from his business that has a basis of $2000 and FMV of $5000

Explanation / Answer

Jim wants to make contributions for the year = $25,000

Contribution =

Cash $10,000

IBM stock FMV = $6000

Apple stock FMV = $10,000

Inventory from his business $2000

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