In 2017, Gray Corporation, a calendar year C corporation, holds a $75,000 charitable contribution carryover from a gift made in 2012. Gray is contemplating a gift of land to a qualified charity in either 2017 or 2018. Gray purchased the land as an investment five years ago for $100,000 (current fair market value is $250,000).
Before considering any charitable deduction, Gray projects taxable income of $1 million for 2017 and $1.2 million for 2018. Should Gray make the gift of the land to charity in 2017 or in 2018? Provide support for your answer.