Your client is making a $5,000 contribution to a local museum. The client realizes that there are tax deductions that can be applied to the current tax year. What would you inform the client of?
Explanation
Answer: C - Contributions of $5,000 or more must be appraised for tax deductions and the appraisal fee is not deductible as contributions. However, they can be claimed as a miscellaneous itemized deduction on Schedule A, subject to the 2 percent AGI limit. A qualified appraisal is not required for publicly traded securities if quotations are published on a daily basis or readily available, even if the amount exceeds $5,000.
