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?
Step by Step Answer:
Principles Of Taxation For Business And Investment Planning 2019 Edition
ISBN: 9781260161472
22nd Edition
Authors: Sally Jones, Shelley C. Rhoades Catanach, Sandra R Callaghan