I don’t think the current system really makes any sense whatsoever. I think it would make sense to (i) allow donors to value assets at either basis or market price (regardless of long-term or short-term holdings, none of this absurd nonsense in the status quo), (ii) charge capital gains taxes on any assets being valued at market price when donated, (iii) allow deductions for up to 100% of income instead of the crazy complicated set of limits currently imposed.
(You could also just value everything at cost and then have people sell assets if they want to value their donation at market value. Either way seems fine.)
I don’t think the current system really makes any sense whatsoever. I think it would make sense to (i) allow donors to value assets at either basis or market price (regardless of long-term or short-term holdings, none of this absurd nonsense in the status quo), (ii) charge capital gains taxes on any assets being valued at market price when donated, (iii) allow deductions for up to 100% of income instead of the crazy complicated set of limits currently imposed.
(You could also just value everything at cost and then have people sell assets if they want to value their donation at market value. Either way seems fine.)