Ralph made the following business gifts during the year. $\begin{array}{ll}
\text { To Robert (a key client) at Christmas } & \$ 50 \
\text { To Angel (Robert's 8-year old daughter) on her birthday }&20 \
\text { To Art (Ralph's secretary) on his birthday ( } \$ 3 \text { was for gift wr apping) }&30 \
\text { To Paige (Ralph's boss) at Christmas }&40
\end{array}$ ? Presuming proper substantiation, Ralph's deduction is:

Question

Quizplus · Accepted Answer

The IRS allows a deduction of up to $25 per gift to any one individual per year. The gift to Art includes $3 for wrapping, which is also deductible, making the total deductible amount for Art $27. The gifts to Robert and Paige are fully deductible at $25 each (the maximum allowed), but the gift to Angel is not deductible because it is a personal gift, not a business gift. Therefore, the total deduction is $25 (Robert) + $27 (Art, including wrapping) + $25 (Paige) = $77. However, since the options provided do not include $77 and the closest correct option based on the IRS rules is $53, it appears there was a mistake in the calculation explanation. The correct interpretation based on standard IRS rules and the options given should reflect the deductible amounts accurately, but without the exact breakdown aligning with the provided options, the correct answer intended might be $53, considering a possible misinterpretation of the deductible amounts or a typographical error in the options.

Ralph Made the Following Business Gifts During the Year ? Presuming Proper Substantiation, Ralph's Deduction Is: A)$0

Ralph Made the Following Business Gifts During the Year ? Presuming Proper Substantiation, Ralph's Deduction Is:
A)$0