Your clients’ religious faith moves them to send their kids to a religious private school, and they pay $15,000 per year per kid to do so. Of course now they’re sitting across the desk from you, their CPA, asking how much of that total they can deduct on Schedule A as a charitable contribution. Important (???): By way of prefacing this loaded question, your clients inform you in no uncertain terms that they know “some Catholic people” who send their kids to Catholic school and “they don’t pay any tuition at all except for what they drop into the collection plate each week, and they deduct every penny of that on their tax returns every year, which we know for a fact because they had a couple of beers at a neighborhood block party and then started bragging about it!” All of this duly and soberly considered, your advice to these clients? Note: Assume, if relevant, that half of each school day is devoted to general studies, the other half to religious studies.
Your clients’ religious faith moves them to send their kids to a religious private school, and they pay $15,000 per year per kid to do so. Of course now they’re sitting across the desk from you, their CPA, asking how much of that total they can deduct on Schedule A as a charitable contribution.
Important (???): By way of prefacing this loaded question, your clients inform you in no uncertain terms that they know “some Catholic people” who send their kids to Catholic school and “they don’t pay any tuition at all except for what they drop into the collection plate each week, and they deduct every penny of that on their tax returns every year, which we know for a fact because they had a couple of beers at a neighborhood block party and then started bragging about it!”
All of this duly and soberly considered, your advice to these clients?
Note: Assume, if relevant, that half of each school day is devoted to general studies, the other half to religious studies.
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