In December of each year, Gracie contributes 15% of her gross income to the American Red Cross (a 50% organization). Gracie is in the 33% marginal tax bracket and is considering the following alternatives as charitable contributions for the year:

a) Cash FMV= $25,000

b) Panther Stock held for 3 years ($30,000 basis) FMV= $25,000

c) Unimproved land held for 10 months ($20,000 basis) FMV= $25,000

d) Cougar Stock held for 8 years (basis $5,000) FMV= $25,000

Which option would be the most advantageous for tax purposes? Why?

(Hint: What would be the amount of the charitable contribution for each of the four options?)