not quite correct. it would seem that this property was held less than 1 year. as a result, it is what the IRS would deem ordinary income property. ordinary income property are items that if sold at FMV would produce ordinary income or short-term capital gain. the deductible amount is FairMarket Value less the amount that would be ordinary income or short-term capital gain if the property were sold. say there was an antique in the lot that would place the FMV at $5,000. selling at this price would produce a $2,000 STCG. thus the $5,000 would have to be reduced by the $2,000 resulting in a $3,000 charitable deduction.
