Should ira follow the friends advice

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Reference no: EM13753270

Ira Cook is planning to make a charitable contribution to the Boy Scouts of Crystal, Inc. stock worth $20,000. The stock has an 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 friend’s advice? Why or why not?

b) Assume that the fair market value is only $13,000. In this case, should Ira follow the friend’s advice? Why or why not?

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 purchased the stock six years ago. Ira’s address is 500 Ireland Avenue, DeKalb, IL 60115.

Reference no: EM13753270

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