Which of the following describes is correct regarding the deductibility of donations made to qualifying charities by a cash-basis individual taxpayer?
A. A contemporaneous written acknowledgement is required for donations of $100.
B. A charitable contribution deduction is not allowed for the value of services rendered to a charity.
C. A qualified appraisal for real property donations is not required to be attached to the tax return unless the property value exceeds $10,000.
D. The charitable contribution deduction for long-term appreciated stock is limited to 50% of adjusted gross income.
Answer:B
B is correct. A charitable contribution deduction is not allowed for the value of services performed for a charity.
A is incorrect. Contributions of $250 or more require a contemporaneous written acknowledgement.
C is incorrect. A qualified appraisal is required if the donated value exceeds $5,000.
D is incorrect. The deduction for capital gain property is generally FMV subject to a 30% of AGI limitation.