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Joe, who is in the 32% tax bracket this year, expect to retire next year and be in the 22% tax bracket. He plans to
Joe, who is in the 32% tax bracket this year, expect to retire next year and be in the 22% tax bracket. He plans to donate $50,000 to his charch. Because he will not have the cash available until next year, Joe donates land ( longterm capital gain property) with a basis of $10,000 and fair market value of $50,000 to the church in December of the current year. He reacquires the land for $50,000 in February of the next year. Discuss Joe's tax objectives and all tax issues related to his actions.
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