Question

(1) What are the key facts?  

(2) What is the general issue to be addressed?

(3) What key words would you use to research this question?  

(4) Use online tax research tools to answer the question. (Several are listed in Chapter 2.)

(5) What important information would you include in a memo/letter to the “client” to communicate the results of your research?

Shaun is a huge college football fan. In the past, he has always bought football tickets on the street from ticket scalpers. This year, he decided to join the university's ticket program, which requires a $2,000 contribution to the university for the “right” to purchase tickets. Shaun will then pay $400 per season ticket. Shaun understands that the price paid for the season tickets is not tax deductible as a charitable contribution. However, contributions to a university are typically tax deductible.

How much, if any, of Shaun's $2,000 contribution for the right to purchase tickets is tax deductible?

(1)

(2)

(3)

(4)

(5)

Answer 1

1 80% of the amount contributed to the university for the "right" to purchase tickets is tax deductible. Tax deductible = 80% x $2000 = $1600 2 How much is tax deductible if one decided to make contribution to the university for the "right" to purchase tickets. 3 Tax Deductions for Donating to a University 4 Turbotax-intuit.com 5 Amount of tax deductible is $1600 that is the 80% of the amount contributed to the university for the "right" to purchase tickets is tax deductible and any amount contributed as a exchange for the ticket themselves will not be treated as donation.