Joe, Who Is in the 32% Tax Bracket This Year

question 65

Essay

Joe, who is in the 32% tax bracket this year, expects to retire next year and be in the 22% tax bracket.He plans to donate $50,000 to his church.Because he will not have the cash available until next year, Joe donates land (long- term capital gain property) with a basis of $10,000 and fair market value of $50,000 to the church in December of the current year.He reacquires the land for $50,000 in February of the next year.Discuss Joe's tax objectives and all tax issues related to his actions.

---

Definitions:

Phonological Rules

The guidelines in a language for how sounds can be combined to produce meaningful speech.

Syntax

The set of rules, principles, and processes that govern the structure of sentences in a given language, specifically relating to word order and sentence organization.

Nativists

believe that much knowledge, particularly in the area of language acquisition, is inherent and genetically programmed into humans.

Grammatical Skills

The ability to use correct grammar structures in writing and speaking.