Marc is a salesperson who gives gifts to his clients. During the year, Marc gives Mr. Alford a gift costing $20 and Mrs. Alford (not a client) a gift costing $15. He also gives Ms. Bland a gift that cost $24 plus $2 for wrapping. How much can Marc deduct? What suggestions, if any, might you make to Marc to maximize the deductible amount of his gift expenditures?

2) Your clients, Tom and Teri Trendy, have a son, Tim (age 27). Tim lives in Hawaii, where he studies the effects of sunscreens on his ability to surf. Last year, Tim was out of money and wanted to move back home. To prevent this, Tom lent Tim $20,000 with the understanding that he would stay in Hawaii. Tom had Tim sign a formal note, including a stated interest rate and payment due dates. Tom has a substantial portfolio and has generated a significant amount of capital gains in the current year. He concluded that Tim is a deadbeat and the $20,000 note is worthless. Tom wants to report Tims bad debt on his and Teris current tax return and net it against his other capital gains and losses. Is Tom able to do this? Why or why not?

3) Steve has his own business as an installer for the light company, and he wears regular work clothes that cost $400 during the year. Also, Steve must wear safety shoes and an orange neon vest on the job that cost $650 this year, and he purchased pole-climbing equipment, spikes, and a safety belt that cost $275. Which of Steves purchases this year can be deducted on schedule C? Why or not why not?