Explore BrainMass

Federal taxation 2012

Search the Internet for at least four (4) stories about major charitable contributions by individuals, including Bill Gates, Warren Buffett, Steve Jobs, and at least one (1) other individual. Be mindful that you are not researching foundations, such as the Bill and Melinda Gates Foundation for this assignment.
Write a 3-4 page paper in which you:
1. For each article, determine the appropriateness of the charitable contribution based on IRS tax rules.
2. For each article, discuss the tax issues related to the contributions.
3. Determine what the ethical considerations in this situation might be and their impact on future charitable contributions.
4. As a tax expert, discuss whether or not you would advise the taxpayer to make charitable contributions in the future.

Solution Preview

The first article is "Bill Gates loses "world's richest" title after giving $28 billion to charity" retrieved from : http://www.geek.com/articles/geek-cetera/bill-gates-loses-worlds-richest-title-after-giving-28-billion-to-charity-2011039/
The second article is "The giving People: Warren Buffet" retrieved from: http://givingpledge.org/#warren_buffett
The third article is "The Charity of Steve Jobs" retrieved from: http://www.forbes.com/sites/larahoffmans/2011/10/06/the-charity-of-steve-jobs/
The fourth article is "Mark Zuckerberg to Donate Most of His Wealth to Charity" retrieved from: http://webcache.googleusercontent.com/search?q=cache:uV_IIukrKMIJ:mashable.com/2010/12/09/mark-zuckerberg/+&cd=1&hl=en&ct=clnk&gl=in

1. For each article, determine the appropriateness of the charitable contribution based on IRS tax rules.
The article says that Bill Gates has give $28 billion to Bill and Melinda Gates foundation. According to publication 526 of IRS, Bill and Melinda Gates foundation is an organization that is qualified to receive deductible contributions. It is a nonprofit charitable organization. It is a charitable organization under section 5 of the publication. However, does the $28 billion represent 50% of the current gross income of Bill Gates for the year?
In the second article Warren Buffet promises to sell off 4% of his Berkshire Hathaway shares every year and distribute the money. Now if the money is given to a qualified organization then according to IRS the money then the deductions are limited to 50% of the gross ...

Solution Summary

This explanation provides you a comprehensive argument relating to Federal taxation 2012