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Helpers, Inc., a qualifying 501(c)(3) organization, incurs lobbying expenditures of $285,000 for the taxable year and grass roots expenditures of $0. Exempt purpose expenditures for
Helpers, Inc., a qualifying 501(c)(3) organization, incurs lobbying expenditures of $285,000 for the taxable year and grass roots expenditures of $0. Exempt purpose expenditures for the taxable year are $1,900,000. Helpers elects to make lobbying expenditures on a limited basis. Click here to access Exhibit 15.3. If required, round your answers to nearest dollar. a. What amount of lobbying expenditures is Helpers allowed to make tax-free under the terms of the election? X b. What is its tax liability as a result of the election? X C. Select your answer to part (b) as a Microsoft Excel formula. LOBBYTAX = MAX (0,(.25( LOBBYEXPEND-LOBBYNONTAX )))
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