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Joe,who is in the 32% tax bracket this year, expects to retire next year and be in the 22% tax bracket. He plans to donate
Joe,who is in the 32% tax bracket this year, expects to retire next year and be in the 22% tax bracket. He plans to donate $50,000 to his church. Because, he will not have the cash available until next year, Joe donates land (long term 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 requires 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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