. For purposes of the charitable contribution deduction, what is capital gain property? Ordinary income property?

A.

Capital gain property is property upon which a capital gain or loss would be recognized if it were sold at its fair market value on the date of contribution. Ordinary income property includes property that would result in the recognition of ordinary income if the property were sold.

B.

Capital gain property is property held over one year upon which a short-term or long-term capital gain would be recognized if it were sold at its fair market value on the date of contribution. If a capital loss would be recognized, the property is considered ordinary income property for purposes of the charitable contribution deduction. Ordinary income property also includes property that would result in the recognition of ordinary income if the property were sold.

C.

Capital gain property is property held over one year upon which a capital gain or loss would be recognized if it were sold at its fair market value on the date of contribution. Ordinary income property includes property that would result in the recognition of ordinary income if the property were sold.

D.

Capital gain property is property held over one year upon which a long-term capital gain would be recognized if it were sold at its fair market value on the date of contribution. If a capital loss or a short-term capital gain would be recognized, the property is considered ordinary income property for purposes of the charitable contribution deduction. Ordinary income property also includes property that would result in the recognition of ordinary income if the property were sold.

b. What is the significance of classifying property as either capital gain property or ordinary income property?

It is important to make the distinction between capital gain property and ordinary income property because

A.

of the different rules that apply in determining the amount of the charitable contribution deduction. If capital gain property is donated to a public charity, generally the amount of the contribution is its fair market value except for special rules relating to tangible personal property. Ordinary income property contributed to a public charity generally results in a contribution amount equal to the fair market value less the gain that would have been recognized if the property had been sold.

B.

ordinary income property donations are not deductible.

C.

of the different rules that apply in determining the amount of the charitable contribution deduction. If capital gain property is donated to a public charity generally the amount of the contribution is equal to the fair market value less the gain that would have been recognized if the property had been sold. Ordinary income property contributed to a public charity generally results in a contribution amount equal to its fair market value.

D.

capital gain property donations are not deductible.