In the current year,Jerry pays $8,000 to become a charter member of Mammoth University's Athletic Council.The membership ensures that Jerry will receive choice seating at all of Mammoth's home basketball games.Also this year,Jerry pays $2,200 (the regular retail price)for season tickets for himself and his wife.For these items,how much qualifies as a charitable contribution?

Question

Quizplus · Accepted Answer

Under the exception to the tangible-benefit-received rule,Jerry can deduct $6,400 (80% of $8,000)of the charter membership to Mammoth University's Athletic Council.The amount Jerry pays ($2,200)to purchase tickets at the regular price is not deductible as a charitable contribution.

In the Current Year,Jerry Pays $8,000 to Become a Charter