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Saad has come to your office to have his 2013 tax return prepared. He is a gradu

ID: 3125294 • Letter: S

Question

Saad has come to your office to have his 2013 tax return prepared. He is a graduate student who works part time and has total income of $6,000. In reviewing his tax information data, you note that he has $4500 listed as “in kind” charitable contributions to The Salvation Army. When you asked him about this potential deduction, he replied that he was cleaning out his closet and contributed a box of old clothes. He said that the $4,500 was his estimate of what they were worth. He has no other documentation or details about the contribution. Also, when you told him that the amount seems high given his income and living status, he suggested that we change the amount to $4,560 so that it would seem to more precise to the IRS. You are a CPA. What SSTS pertain to this situation?

Explanation / Answer

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