Question

What is the amount of Maple Corp.'s charitable contribution deduction for the painting (assuming income limitations do not apply)

Answer 1

Answer:

The first part of the question is missing, so I looked for similar questions:

Maple Corp. owns several pieces of highly valued paintings that are on display in the corporation's headquarters. This year, it donated one of the paintings valued at $100,000 (adjusted basis of $25,000) to a local museum for the museum to display.

Maple Corp. can deduct $100,00 as charitable contribution.

When a corporation or an individual donates art work to a qualifying charity, they can deduct the fair market value of the art work if:

1. they have owned the art work for at least 1 year prior to the donation
2. the charity must use the art work in a manner directly related to its regular activities and mission
3. the charity must hold the art work for at least 3 years after you donated it
4. the IRS must classify the company or individual as an investor or art collector, e.g. artists cannot deduct donations of their own art