Roger transferred publicly traded stock valued at $100,000 to the Museum of Natu

Question

Roger transferred publicly traded stock valued at $100,000 to the Museum of Natural History for $50,000 cash. Roger's basis in the stock is $9,000. This is the only gift for the year. Which of the following is correct?

1. Roger may claim a charitable contribution of $50,000 on his income tax return (subject to any applicable limitations)

2. Roger is not required to report the gift on Form 709.

3. Roger must report capital gain on his income tax return of $45,000 ($50,000 cash received-$4500 allocable basis)

4. All of the above

Explanation / Answer

Answer is 4

1.Since the contribution is to the Museum of Natural History , Roger can claim charitable contribution of $50,000.

2. Since Roger has transfrred all the rights in the assets to the museum , he need not report if From 709

3. Since the transfer is for 50% of the value of the stock, he shall report a capital gain of $45,000 in his tax return.

($50,000 - $4,500)

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