For the current year, Sheila Jones had adjusted gross income of $100,000. During the year, she contributed $6,000 to her church and an additional $3,000 to qualified charities. She also contributed religious artwork with a fair market value of $60,000 and a basis of $20,000 to her church. The church intends to display the religious artwork in the church foyer. If Sheila chooses to itemize her deductions, what is the amount of her deductible charitable contribution?




B. $20,000


C. $39,000


D. $49,000

is it B

No, the correct answer is D. $49,000.

To determine the deductible charitable contribution, we need to consider the contributions made to qualified charities and the fair market value of the religious artwork.

First, let's calculate the deductible amount for the cash contributions. Sheila contributed $6,000 to her church and an additional $3,000 to qualified charities, making a total of $9,000 in cash contributions. This entire amount is deductible.

Next, let's calculate the deductible amount for the religious artwork. Sheila donated artwork with a fair market value of $60,000 and a basis of $20,000. The deductible amount for non-cash contributions is usually the fair market value. However, if the artwork is intended for use by the charity, rather than being sold to support charitable activities, the deduction is limited to the basis of the artwork. In this case, since the artwork is intended to be displayed in the church foyer, the deductible amount is limited to the basis of $20,000.

Therefore, the total deductible charitable contribution is the sum of the cash contributions and the deductible amount for the artwork, which is $9,000 + $20,000 = $29,000.

So, the correct answer is D. $49,000.