Question

Which of the following is NOT required in a contemporaneous written acknowledgement of a charitable gift? A) The amount of cash and a description of any property other than cash contributed. B) Whether the organization receiving the gift provided any goods or services in return for the gift. C) A statement concerning the donor's cost basis. D) A description and a good-faith estimate of the value of any goods or services given by the donor.

Answer 1

In a contemporaneous written acknowledgement of a charitable gift, the statement concerning the donor's cost basis is not required.

Step-by-step explanation:

In a contemporaneous written acknowledgement of a charitable gift, the statement concerning the donor's cost basis is NOT required. A contemporaneous written acknowledgement is a document provided by a charitable organization to a donor that acknowledges the contribution and satisfies the IRS substantiation requirements for claiming a charitable deduction.

The IRS requires that certain information be included in the acknowledgement, such as the amount of cash and a description of any property other than cash contributed, whether the organization provided any goods or services in return for the gift, and a description and a good-faith estimate of the value of any goods or services given by the donor.

However, the statement concerning the donor's cost basis is not necessary in the acknowledgement. The cost basis of a donated asset is used to determine the potential taxable gain or loss when the asset is sold, but it is not relevant for the purpose of acknowledging the charitable gift.