Nick negotiates a $4.5 million contract per year with a major college football program to become its head coach. What amount is deductible by the program in 2017 his first full year of employment.
A)None
B)$1,000,000
C)$3,000,000
D)$4,500,000
E)None of the above

Question

Quizplus · Accepted Answer

The entire $4.5 million is deductible by the program as a business expense for compensation paid to an employee, as there were no specific limitations on deductibility of compensation for college coaches in 2017.

Nick Negotiates a $4