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Topic 71: Charitable Contributions and Deductions - 229 5 Nondeductible contributions A Note: Gifts to some organizations may not be deductible as charitable contributions, but may be deductible as ordinary and necessary business expenses B There are certain nondeductible contributions (1) Money or property given to (a) Civic leagues, social and sports clubs, labor unions, and chambers of commerce (b) Foreign organizations (c) Groups that are run for personal pro t (d) Groups whose purpose is to lobby for law changes (e) Homeowners associations (f) Individuals (g) Political groups or candidates for public of ce (2) Cost of lotto and bingo tickets (3) Dues and fees to country clubs (4) Tuition (5) Value of blood given to a blood bank (6) Contributions consisting of the right to use property (such as a rent-free lease to the Boy Scouts) C Payments made to a college or university in exchange for the right to buy tickets to a sporting event qualify for a charitable deduction of 80 percent of the amount paid Any amount actually paid for tickets is not deductible Example: Steve graduated from ABC University and donated $3,000 to the athletic department to guarantee priority to purchase two premium season tickets to home football games Steve then purchased two season tickets at a regular price of $200 each The charitable contribution for the current year is $2,400 (80 percent of $3,000) The $400 expenditure for the tickets cannot be claimed 6 Appraisals A Appraisals are generally required if a contribution is more than $5,000 Fees paid for the appraisal are not deductible as contributions They can be claimed as a miscellaneous itemized deduction on Schedule A, subject to the 2 percent of AGI limit B A quali ed appraisal is not required for publicly traded securities if quotations are published on a daily basis or readily available, even if the amount exceeds $5,000 7 Substantiation requirements A Donations of less than $250 (1) Cash donations need receipts or other reliable written records with date, amount, and name of organization (2) Noncash donations do not require receipts where it is impractical to get them B Donations of $250 or more (1) Cash donations of $250 or more in any one day to any one organization must have written substantiation from the organization (2) Noncash donations require a written acknowledgement from the charitable organization For contributions if more than $500, the taxpayer must show the means of acquisition of the property, the date acquired, and the adjusted basis Most contributions of more than $5,000 require a written appraisal Form 8283 must be led for noncash contributions over $500.

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Without persistent connections, Web browsers would use one HTTP connection to fetch the HTML page and then one for each image, leading to a rough total of

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230 - Income Tax Planning C Do not combine separate contributions For example, donations of $25 each week to a church are considered separate payments that should not be combined 8 Charitable contributions by business entities A Corporations can deduct up to 10 percent of taxable income after adding back any deduction for NOL or capital loss carrybacks or carryforwards and dividends received B Excess contributions are carried forward ve years C Contributions from pass-through entities are re ected on the returns of the owners

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The practical effect of this difference is noticeable Let's assume that the total content required to transfer this page (including images) is about 75 K, that it takes 100 ms to transfer the content, and that it takes 15 ms to send a packet between our client and the sample Web site (the RTT is thus 30 ms) This means that the total transfer time for both scenarios will be

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102 15 + 100 = 1630 ms without persistent connections 52 15 + 100 = 880 ms with persistent connections

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By using persistent connections, we've reduced the transfer rate about 50 percent Convincing, isn't it In addition to better end-to-end transfer times, there are a number of other advantages to persistent connections, among them:

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1 Assumptions for Retirement Planning A In ation The costs of goods and services that retirees use most often increase faster than the general rate of in ation measured by the Consumer Price Index (CPI) B Retirement period and life expectancy Retirement period is contingent on various factors: years until retirement, years in retirement, and family history/longevity C Lifestyle Before retiring, have your clients attempt to live on 80 percent of their current income You can offer to invest the remainder Most clients need more than 100 percent to maintain their current standard of living D Total return Project investment return and project the tax rate 2 Financial needs A Living costs B Charitable and bene ciary gifting objectives: To stretch your client s retirement income, you may want to explore charitable estate planning strategies and reduce your client s current, ongoing contributions to charity C Medical costs, including long-term care needs analysis D Other (trust and foundation funding, education funding, etc): current residence, food costs, car loans, auto insurance costs, clothing cost, health insurance premiums, recreation costs, future savings, and income taxes 3 Income sources A Total return assumptions (1) Return assumptions include all sources of future income, such as quali ed retirement plans, tax-deferred plans, and Social Security (2) Retirement income-need analysis calculation comprehensive example: PV I N FV PMT Present value Interest rate Number of periods Future value Payment

Less CPU and memory demand of routers and servers (fewer TCP connections) Less bandwidth required to transfer a set of related objects (ie, a Web page plus its images) Better network congestion control as more time is given to an established TCP connection, the built-in congestion control features of TCP have more time to improve overall network throughput

Comparing (9.700) and (9.676), we see that for the i.i.d. case the average SNR penalty of dual diversity SC relative to MRC is simply given by SC / MRC = Q / 2 , which becomes diminishingly small for large . Amount of Fading The closed-form expressions for the moments can also be used to nd very simple expressions for the AF, which, in the most general case, will be a function of 1 , 2 , 1 , 2 , and . However, the most general result simpli es to more compact and simpler expressions for the two following special cases of interest. In particular, for correlated identically distributed branches, the AF simpli es to Q 2 1 2 1 (9.701) AFSC = exp 1 2 2 Q2 1

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