Question

4. Brian makes gifts as follows:

Recipient Cost of Gift

Mr. Brown (a client) $27 *

Mrs. Brown (Mr. Brown’s wife) 15

Ms. Smith (Brian’s receptionist) 30

Mr. Jones (Brian’s boss) 40

* Includes $2 for gift wrapping

Presuming adequate substantiation and no reimbursement, how much may Brian deduct?

Answer 1

ANS MIL Brown's gift incide deductions: of nominal cost in Respect to gift- wrapping. (27 +95) - $52 M215 Brown is in a seperate Business- then deduction is allowed for the gift mode to her else. She falls under the $25 limit applicable to MH. Brlown. The deduction for M1. Smith's gift is. limited to $25 No deduction is allowed for Brian's gift to his boss