Client was awarded damages of $25K for a small property. His basis is $8000. After this settlement he donated the property to the city. The PVA's office value listed is $25000. 

Am I right thinking that 25K-8K = 17K to report as income?  

Would his donation deduction then be the  17K taxed?  

 The actual damage to the property caused sliding of the hillside underneath the property. 

Any help to make sure I am doing both of these entries correctly will be greatly appreciated.