If Sabrina gets an appraisal that states the value of the clothes is $6,000, how much tax deduction will she receive for the clothes? If Sabrina’s clothes are worth $6,000, is she better off getting the appraisal or reporting a deduction of $4,900? What information would you need to answer this question? Does Sabrina’s reporting $4,900 violate tax law and/or ethical standards? Do you think the IRS has reason to be suspicious of contributions that fall just below $5,000? Why?

Answer rating: 100% (QA)

To determine how much tax deduction Sabrina will receive for her clothes we need to consider several factors including the appraisal value her income ... View the full answer