Joe, Who Is in the 33% Tax Bracket This Year

question 13

Essay

Joe, who is in the 33% tax bracket this year, expects to retire next year and be in the 25% 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 next year. Discuss Joe's tax objectives and all tax issues related to his actions.

---

Definitions:

Professional Goal

A career objective or aim that an individual aspires to achieve in their professional life.

Interview

A meeting between two people where one asks questions of the other.

Eye Contact

The act of two individuals looking directly into each other's eyes, often used as a form of nonverbal communication.

Résumé

A document prepared by job applicants summarizing their work experience, education, and skills to showcase their qualifications for a job.