Case Study: Pilgrimage

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Elizabeth Collins has purchased tickets to the university’s basketball game. The university requires a minimum contribution of $2,000 to join the ticket program at the university. She paid $400 per season ticket, but will not be tax deductible. However, the contributions to the university may be tax deductible as a charitable contribution. ISSUE: Is Elizabeth eligible to make a charitable contribution deduction for the purchase of the university basketball tickets? According to the IRC 170(l) and Revenue ruling 67-246, Elizabeth can report the ticket purchases as a charitable contribution. What, if any, amount of the $2,000 contribution is deductible as a charitable contribution? IRC 170(l) states that 80% can be deductible. APPLICABLE

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