Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In December 2013, one of your clients, Tim Huffman, donated a valuable piece of art to a local charity to be auctioned at its annual

In December 2013, one of your clients, Tim Huffman, donated a valuable piece of art to a local charity to be auctioned at its annual fundraising auction. When Mr. Huffman donated the art, it was appraised for $20,000. However, at the auction held on January 20, 2014, it sold for $35,000. Mr. Huffman claims that the appraisal was obviously wrong and that the value of what he donated was obviously $35,000. Consequently, he wants to deduct $35,000 on his 2013 tax return. Write a letter (8 1/2" x 11") using 12 point font and 1-1/2 space, to Mr. Huffman discussing the tax implications of the appraisal and subsequent sale of the art he donated.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions