Question: Dan Simms is the president and sole shareholder of Simms

Dan Simms is the president and sole shareholder of Simms Corporation, 1121 Madison Street, Seattle, WA 98121. Dan plans for the corporation to make a charitable contribution to the University of Washington, a qualified public charity. He will have the corporation donate Jaybird Corporation stock, held for five years, with a basis of $11,000 and a fair market value of $25,000. Dan projects a $310,000 net profit for Simms Corporation in 2014 and a $100,000 net profit in 2015. Dan calls you on December 12, 2014, and asks whether Simms should make the contribution in 2014 or 2015. Write a letter advising Dan about the timing of the contribution.

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  • CreatedMay 25, 2015
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