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From: rb@houxn.UUCP (R.BOTWIN)
Newsgroups: net.taxes
Subject: Re: US Charitable Donation deduction rules
Message-ID: <525@houxn.UUCP>
Date: Tue, 26-Mar-85 09:41:43 EST
Article-I.D.: houxn.525
Posted: Tue Mar 26 09:41:43 1985
Date-Received: Wed, 27-Mar-85 03:37:30 EST
References: <12145@watmath.UUCP>
Organization: AT&T Information Systems, Holmdel NJ
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Amazing, but true!!!!   Subject to a maximum charitable deduction, based
upon income, charitable donations of property result in deductions of their
"fair market value," not their cost basis to the donor.
A typical example is donation of common stock.  Buy some stock for $100,
watch it go up to $1,000, then decide to sell and pay tax, or give it away
and save tax!

If sold, you PAY tax on $900 (the profit), if given away
you SAVE taxes on $1,000 (the fair market value of the gift).