"Ira Cook is planning to make a charitable contribution of Crystal Inc. Stock worth 20,000 to Boy Scouts. The stock has adjusted basis of 15,000. A friend has suggested that Ira sell the stock and contribute the 20,000 in proceeds rather than contribute the stock.
a) Should Ira follow the friends advice? Why?.
b)Assume the fair market value is only $13,000. In this case, should Ira follow the friends advice? Why?
c)Rather than make a charitable contribution to the Boy Scouts, Ira is going to make a gift to Nancy, his niece. Advise Ira regarding (a) and (b).
d)Write a letter to Ira regarding whether in (a) he should sell the stock and contribute the cash or contribute the stock. He has informed you that he has purchased the stock six years ago."