McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 43

Shaun is a huge college football fan.In the past, he has always bought football tickets on the street from ticket scalpers.This year, he decided to join the university's ticket program, which requires a $2,000 contribution to the university for the "right" to purchase tickets.Shaun will then pay $400 per season ticket.Shaun understands that the price paid for the season tickets is not tax deductible as a charitable contribution.However, contributions to a university are typically tax deductible.a.Use an available tax service to determine how much, i f any, of Shaun's $2,000 contribution for the right to purchase tickets is tax deductible.b.Write a letter to Shaun communicating the results of your research.