For the current tax year, Tom and Karen, married taxpayers filing a joint tax return, qualified to itemize deductions. Their adjusted gross income was $90,000. Karen gave $1,000 for Christmas gifts directly to a needy family identified by her co-workers. Tom had $1,500 withheld from his payroll checks throughout the year to benefit the Children's Make-a-Wish Foundation. In addition, Tom and Karen donated to their church a piece of artwork valued at $2,000 that they purchased for $500 when they were married 10 years ago. There were no other contributions made throughout the year. Considering only to the information contained here, on their current year income tax return, Tom and Karen will claim:
– A charitable deduction of $3,500 and a capital gain of $1,500.
– A charitable deduction of $4,500 and a capital gain of $0.
-A charitable deduction of $3,000 and a capital gain of $1,500.
– A charitable deduction of $3,500 and a capital gain of $0.