1. Taxpayer wants to make a donation to qualified public charity today. The donation would consist of real estate held by Taxpayer for investment for five years which real estate has a fair market value of $30,000. Taxpayer's adjusted basis in the real estate is $20,000. Taxpayer wants to know how much gain Taxpayer would recognize as a result of this transaction and if Taxpayer may take an income tax charitable deduction for this contribution? What is the correct answer to Taxpayers questions?

a. Taxpayer would recognize a gain of $10,000, and Taxpayer may take charitable deduction based on the fair market value of the real estate subject to the Taxpayers 50% of adjusted gross income limitation for charitable contributions of capital assets to qualified public charities, provided Taxpayer itemizes deductions.

b. Taxpayer does not recognize any gain, but Taxpayers charitable deduction would be based on Taxpayers adjusted basis in the property contributed.

c. Taxpayers allowable charitable deduction would be $10,000.

d. None of the above is correct.

2. Assume that in 2018 Taxpayer makes a donation to qualified public charity of real estate held by Taxpayer for investment for five years and having a fair market value of $20,000 on the date of the contribution. Taxpayer's basis in the property is $30,000. How much loss or deduction would be allowable to or recognized by taxpayer as a result of this transaction?

a. Taxpayer would recognize a capital loss of $10,000 that may be used to offset Taxpayers capital gains.

b. There would be no deductible loss allowable with respect to the inherent loss in the property, but taxpayer may take a charitable deduction of $20,000 subject to the adjusted gross income percentage limitation, and provided Taxpayer itemizes deductions.

c. Taxpayer may carry over the loss until Taxpayer makes a bargain sale of other real estate to a public charity.

d. Taxpayers allowable charitable income tax deduction would be $30,000.

3. Tom, Dick, and Larry purchase real estate from Jane. The grantee portion of the deed Jane gives them reads to Tom, Dick, and Larry. Tom, Dick, and Larry own the real estate as:

a. joint tenants with right of survivorship

b. tenants by the entireties

c. tenants in common

d. trustees

4. Common stock of ABC Corporation, a publicly traded corporation, and cash was contributed by Taxpayer to a qualified public charity on June 10, 2018. Taxpayers adjusted basis in the stock was $1,000 and the fair market value of the stock on June 10 was $1,500. $2,000 of cash was also contributed to qualified public charity on June 10, 2018. The stock was held long-term and was held for investment. What is the correct income tax treatment as a result of the donations?

a. Taxpayers initial income tax charitable deduction amount would be $1,000 for the stock with no gain recognized with respect to the stock and $2,000 for the cash, both subject to the same adjusted gross income limitation, assuming that Taxpayer itemizes deductions.

b. The amount of the charitable deduction may be limited based upon the overall phase-out of itemized deductions.

c. Taxpayers initial income tax charitable deduction amount would be $1,500 for the stock with $500 gain recognized and $2,000 for the cash, both subject to the same adjusted gross income limitation, assuming that Taxpayer itemizes deductions.

d. b and c are both correct.

e. None of the above statements is a correct statement.