In 2015, Gale and Cathy Alexander hosted an exchange student, Axel Muller, for 9 months. Axel was part of International Student Exchange Programs (a qualified organization).
Axel attended tenth grade at the local high school. Gale and Cathy did not claim Axel as a dependent but paid the following items for Axel's well-being:
Food and clothing ............................................. $1,500
Medical care .................................................... 200
Fair market value of lodging ................................. 2,700
Entertainment ................................................... 100
Total .............................................................. $4,500
Gale and Cathy have asked for your help in determining if any of the $4,500 can be deducted as a charitable contribution.
Required:
Go to the IRS website (www.irs.gov) and locate Publication 526. Write a letter to Gale and Cathy answering their question. If they can claim a deduction, be sure to include in your letter the amount that can be deducted and any substantiation requirements. (An example of a client letter is available at the website for this text located at www.cengagebrain.com.)