Mr. and Mrs. Isaacs, ages 68 and 66, always claim the standard deduction on their joint return.

Question:

Mr. and Mrs. Isaacs, ages 68 and 66, always claim the standard deduction on their joint return. They own a local restaurant, the Shoreline Grill, as a sole proprietorship. They are both graduates of State University and make regular donations to their alma mater. Their method for doing so is a bit unusual. At the beginning of each State University home football game, the public address system informs the crowd that the Shoreline Grill will contribute $50 to the athletic scholarship fund for every first down the home team makes. As a result of this commitment, Mr. and Mrs. Isaacs contributed $6,950 to State University this year. What tax planning objective may they have accomplished by structuring their donation in this manner?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Principles Of Taxation For Business And Investment Planning 2019 Edition

ISBN: 9781260161472

22nd Edition

Authors: Sally Jones, Shelley C. Rhoades Catanach, Sandra R Callaghan

Question Posted: