Income Tax Fundamentals 2020
38th Edition
ISBN: 9780357391129
Author: WHITTENBURG
Publisher: Cengage
expand_more
expand_more
format_list_bulleted
Question
Chapter 3, Problem 17P
To determine
Introduction: Taxpayers are allowed to deduct business gifts to the extent of $25 per done per year. Small gifts costing up to $4 has no limitation, and also gifts to the employees for length of service is deducted up to a limit of $400.
The amount of deduction for business gifts allowed to S for 2019.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Sam owns an insurance agency and makes the following business gifts during the year. Calculate Sam's deduction for business gifts. If an amount is zero, enter "0". Donee Amount Amount Allowed 1. Ms. Sears (a client) $35, plus $4 shipping $ 2. Mr. Williams (a tennis partner, not a business prospect or client) 55 3. Mr. Sample (a client) and Mrs. Sample (nonclient wife of Mr. Sample) 22 20 4. Various customers (calendars costing $3 each with the company name on them) 300 5. Mr. Shiver (an employee gift, a watch, for 25 years of continuous service) 175 Total business gift deduction
Marco makes the following business gifts during the year:
Miss Scarlett (a potential client)
$30
Mr. and Mrs. White (both are clients)
$40
Professor Plum (a client)
$18
Mrs. Plum (the nonclient wife of Professor Plum)
$12
Charles Mustard (Marco’s boss)
$27
Marco also spent $15 on wrapping paper and a card for the above gift to the Whites.Calculate Marco’s total allowed deduction for gifts
Sam owns an insurance agency and makes the following business gifts during the year.
Calculate Sam's deduction for business gifts.
If an amount is zero, enter "0".
Аmount
Donee
Amount
Allowed
1. Ms. Sears (a client)
$35, plus $4 shipping
2. Mr. Williams (a tennis partner,
55
not a business prospect or client)
3. Mr. Sample (a client) received $22 and
Mrs. Sample (nonclient spouse of Mr. Sample)
42
received a gift valued at $20
4. Various customers (calendars
300
costing $3 each with the company name on them)
5. Mr. Shiver (an employee gift,
175
a watch, for 25 years of continuous service)
Total business gift deduction
Chapter 3 Solutions
Income Tax Fundamentals 2020
Ch. 3 - Prob. 1MCQCh. 3 - Prob. 2MCQCh. 3 - Prob. 3MCQCh. 3 - Which of the following formulas represents the...Ch. 3 - Prob. 5MCQCh. 3 - Prob. 6MCQCh. 3 - Heather drives her minivan 953 miles for business...Ch. 3 - Prob. 8MCQCh. 3 - Prob. 9MCQCh. 3 - Under the high-low method, the federal per diem...
Ch. 3 - Prob. 11MCQCh. 3 - Prob. 12MCQCh. 3 - Prob. 13MCQCh. 3 - Prob. 14MCQCh. 3 - Prob. 15MCQCh. 3 - Prob. 16MCQCh. 3 - Prob. 17MCQCh. 3 - Prob. 18MCQCh. 3 - Prob. 19MCQCh. 3 - Prob. 20MCQCh. 3 - Prob. 21MCQCh. 3 - Prob. 22MCQCh. 3 - Prob. 23MCQCh. 3 - Stewie, a single taxpayer, operates an activity as...Ch. 3 - Prob. 2PCh. 3 - Lawrence owns a small candy store that sells one...Ch. 3 - Business with gross receipts of $25 million or...Ch. 3 - Teresa is a civil engineer who uses her automobile...Ch. 3 - Prob. 7PCh. 3 - Martha is a self-employed tax accountant who...Ch. 3 - Prob. 9PCh. 3 - Go to the U.S. General Services Administration...Ch. 3 - Prob. 11PCh. 3 - Prob. 12PCh. 3 - Marty is a sales consultant. Marty incurs the...Ch. 3 - Prob. 14PCh. 3 - Prob. 15PCh. 3 - Cooper and Brandy are married and file a joint...Ch. 3 - Prob. 17PCh. 3 - Prob. 18PCh. 3 - Prob. 19PCh. 3 - Prob. 20PCh. 3 - Cindy operates a computerized engineering drawing...Ch. 3 - Prob. 22PCh. 3 - Prob. 23PCh. 3 - Prob. 24PCh. 3 - Lew is a practicing CPA who decides to raise...
Knowledge Booster
Similar questions
- Ralph made the following business gifts during the year To Robert (a key client) at Christmas: $50 To Angel (Robert’s 8-year old daughter) on her birthday: $20 To Art (Ralph’s secretary) on his birthday ($3 was for gift wrapping): $30 To Paige (Ralph’s boss) at Christmas: $40 Presuming proper substantiation, Ralph’s deduction is: A. $0 B. $53 C. $73 D. $78arrow_forwardCarol makes the following business gifts during the tax year. Calculate Carol's allowed deduction for each business gift and her total allowed deduction. If an amount is zero, enter "0". Donee Amount Deduction 1. Mr. Jones (a client) $20 $fill in the blank 1 2. Mr. Brown (a client) 32 fill in the blank 2 3. Mrs. Green (a client) received a $15 gift while herhusband, Mr. Green (a non-client) received an $18 gift 33 fill in the blank 3 4. Ms. Gray (Carol's supervisor) 45 fill in the blank 4 5. Mr. Edwards (a client) receiving a display rack with Carol's company name on it 75 fill in the blank 5 6. Various customers (receiving ball point pens with the company name on them) 140 fill in the blank 6 Total business gift deduction $fill in the blank 7arrow_forward11.Bonnie owns a hardware store. During the year, Bonnie gives business gifts having the indicated costs to the following individuals: Mrs. Johnson (a customer) $37 plus $3 for shipping. Mr. Johnson, (non client husband of Mrs. Johnson) $10 Ms. Doncan (a customer) $22 What is the amount of Bonnie's deduction for business gifts?arrow_forward
- Morrison (self-employed) made the following business gifts during the year: To Quinn (a key client) at Christmas $50 To Flores (Quinn's 8 -year-old child) for a birthday 20 To Ramim (Morrison' s secretary) for a birthday ($3 was for gift wrapping) 30 Presuming proper substantiation, Morrison's deduction is: a. $53. b. $73. c. $78. d. $98. e. $103.arrow_forwardCharlie, a self-employed financial planner, had the following expenses in 2021 in the following amounts: Gift To Haley, Charlie's professional assistant $36 Gift To Darryl (a key client, includes $3 for gift wrapping) 28 Gift To Darryl's daughter for her graduation (not a client) 20 Gift To Veronica, Charlie's personal hair stylist 30 In addition, Charlie took Haley to lunch at a local restaurant on administrative professional's day 62 Assuming that Charlie has adequate substantiation, how much can he deduct? Please show calculations or explanation.arrow_forwardRequired information [The following information applies to the questions displayed below.] In January of year 0, Justin paid $8,800 for an insurance policy that covers his business property for accidents and casualties. Justin is a calendar-year taxpayer who uses the cash method of accounting. What amount of the insurance premium may Justin deduct in year O in each of the following alternative scenarios? Note: Leave no answers blank. Enter zero if applicable. d. Instead of paying an insurance premium, Justin pays $8,800 to rent his business property from April 1 of year 0 throug March 31 of year 1. Deductible amountarrow_forward
- Business Gifts (LO 3.9) Sam owns an insurance agency and makes the following business gifts during the year. Calculate Sam's deduction for business gifts. If an amount is zero, enter "0". Donee Amount Amount Allowed 1. Ms. Sears (a client) $35, plus $4 shipping $ 2. Mr. Williams (a tennis partner,not a business prospect or client) 55 3. Mr. Sample (a client) andMrs. Sample (nonclient wife of Mr. Sample) 2220 4. Various customers (calendarscosting $3 each with the company name on them) 300 5. Mr. Shiver (an employee gift,a watch, for 25 years of continuous service) 175 Total business gift deduction $ How do you do this?arrow_forwardCharlie, a self-employed financial planner, made gifts in 2021 in the following amounts: To Haley, Charlie's professional assistant $36 To Darryl (a key client, includes $3 for gift wrapping) 28 To Darryl's daughter for her graduation (not a client) 20 To Veronica, Charlie's personal hair stylist 30 In addition, Charlie took Haley to lunch at a local restaurant on professional's day 62 Assuming that Charlie has adequate substantiation, how much can he deduct? Show calculations for partial credit.arrow_forwardDarrell is an employee of Whitneys. During the current year, Darrells salary is 136,000. Whitneys net self-employment income is also 136,000. Calculate the Social Security and self-employment taxes paid by Darrell and Whitney. Write a letter to Whitney in which you state how much she will have to pay in Social Security and self-employment taxes and why she owes those amounts.arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
- Individual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT
Individual Income Taxes
Accounting
ISBN:9780357109731
Author:Hoffman
Publisher:CENGAGE LEARNING - CONSIGNMENT