Question

Agnes is retired and has only a $12,000 annual pension as income. In 2018, Agnes' aunt dies and leaves her land worth $1.2 million. Agnes sees no need for the land and donates it immediately to a qualified public charity. Agnes may deduct a $1.2 million charitable contribution on her 2018 tax return.

Answer 1

Answer:

The answer is: NO

Explanation:

Deductions for charitable contributions are limited to 30% of your adjusted gross income (AGI). Since Agnes only makes $12,000 per year, the maximum deduction she could file is $3,600. The estate Agnes received as inheritance is below the tax exemption limit ($11.18 million in 2018) so she doesn't have to pay any other taxes.