Evaluating Charitable Deductions for Hosting an Exchange Student Scenario In 2024 Gale and Cathy Alexander hosted an exchange student Axel Muller for nine 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 Axels wellbeing Food 1500 Medical care 200 Fair market value of lodging 2700 Entertainment 100 Total 4500 Gale and Cathy have asked for your help in determining if any of the 4500 can be deducted as a charitable contribution Step 1 Utilize AI Tools for Research Use an AI tool such as ChatGPT Bing AI or Perplexityai to assist you in understanding the IRS rules on charitable contributions related to hosting exchange students Your goal is to find key information related to IRS guidelines on deducting expenses for hosting exchange students Specifics from IRS Publication 526 Charitable Contributions Substantiation and reporting requirements for such deductions Sample AI Prompt According to IRS Publication 526 what expenses can be deducted when hosting a foreign exchange student and what are the substantiation requirements Ensure you verify the AIgenerated information by crossreferencing it with content on the IRS website Step 2 Compose a Client Letter Write a professional letter to Gale and Cathy Alexander explaining how much of their expenses for hosting Axel Muller can be deducted as a charitable contribution and why Your letter should Reference relevant content from IRS Publication 526 Clearly explain which portions of the 4500 are deductible Discuss any substantiation and reporting requirements Demonstrate a logical understanding of how such deductions are treated under US tax law Tip Use the AI tool to draft revise or proofread your letter but ensure it reflects your own understanding and wording