Federal Income Taxation
Final Test Solutions
Course Introduction
Federal Income Taxation examines the fundamental principles and rules governing the federal income tax system in the United States. The course provides a comprehensive overview of the Internal Revenue Code, Treasury Regulations, and key judicial decisions shaping federal tax policy. Students explore core topics such as the definition of gross income, deductions, tax credits, exclusions, assignment of income, taxation of property transactions, and the tax treatment of individuals, partnerships, and corporations. Emphasis is placed on statutory interpretation, tax planning, and policy considerations underlying current tax law. The course equips students with analytical skills to understand and apply complex tax provisions in both theoretical and practical contexts.
Recommended Textbook
South Western Federal Taxation 2012 Comprehensive by William H. Hoffman
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Chapter 1: An Introduction to Taxation and Understanding
the Federal Tax Law
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Q1) Federal excise tax is no longer imposed on cosmetics.
A)True
B)False Answer: True
Q2) If the tax deficiency is attributable to fraud,the negligence penalty will not be imposed.
A)True
B)False Answer: True
Q3) The Federal income tax on corporations generates more revenue than the Federal income tax on individuals.
A)True
B)False
Answer: False
Q4) In cases of doubt,courts have held that tax relief provisions should be narrowly construed against taxpayers.
A)True
B)False
Answer: True
Page 3
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Chapter 2: Working With the Tax Law
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Q1) A Temporary Regulation under § 173 of the Code would be cited as follows: Temp.Reg.§ 173.
A)True
B)False
Answer: False
Q2) Which court decision would probably carry more weight?
A) Regular U.S. Tax Court decision.
B) Reviewed U.S. Tax Court decision.
C) U.S. District Court decision.
D) Memorandum Tax Court decision.
E) U.S. Court of Federal Claims.
Answer: B
Q3) A Revenue Ruling is a judicial source of Federal tax law.
A)True
B)False
Answer: False
Q4) Texas is in the jurisdiction of the Sixth Circuit Court of Appeals.
A)True
B)False
Answer: False
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Chapter 3: Tax Determination: Personal and Dependency
Exemptions: an Overview of Property Transactions
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Q1) List at least three exceptions to the application of the kiddie tax.
Answer: · Unearned income of $1,900 or less.
· Age 19 (or age 24 if a full-time student)or older.
· Both parents deceased.
· Earned income in excess of 50% of support.
· Married and filing a joint return with spouse.
Q2) Benjamin,age 16,is claimed as a dependent by his parents.During 2011,he earned $700 at a car wash.Benjamin's standard deduction is $1,250 ($950 + $300).
A)True
B)False
Answer: False
Q3) After her divorce,Hope continues to support her ex-husband's sister,Cindy,who does not live with her.Hope can claim Cindy as a dependent.
A)True
B)False
Answer: True
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Chapter 4: Gross Income: Concepts and Inclusions
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Q1) On a particular Saturday,Tom had planned to paint a room in his house,but his employer gave him the opportunity to work that day.If Tom works,he must hire a painter for $100.For Tom to have a positive cash flow from working and hiring the painter:
A) Tom must earn at least $125 if Tom is in the 25% marginal tax bracket.
B) Tom must earn at least $150 if Tom is in the 33% marginal tax bracket.
C) Tom must earn at least $150 if he is in the 25% marginal tax bracket.
D) Tom must earn at least $115 if he is in the 15% marginal tax bracket.
E) None of the above.
Q2) Green,Inc.,provides group term life insurance for all of its employees.The coverage equals twice the employee's annual salary.Sam,a vice-president,worked all year for Green,Inc.and received $250,000 of coverage for the year at a cost to Green of $3,000.The Uniform Premiums (based on Sam's age)are $.30 per month for $1,000 of protection.How much must Sam include in gross income this year?
A) $0.
B) $720.
C) $900.
D) $3,000.
E) None of the above.
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Page 6
Chapter 5: Gross Income: Exclusions
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Q1) In 2011,Khalid was in an automobile accident and suffered physical injuries.The accident was caused by Rashad's negligence.Khalid threatened to file a lawsuit against Amber Trucking Company,Rashad's employer,claiming $50,000 for pain and suffering,$25,000 for loss of income,and $100,000 in punitive damages.Amber's insurance company will not pay punitive damages; therefore,Amber has offered to settle the case for $120,000 for pain and suffering,$25,000 for loss of income,and nothing for punitive damages.Khalid is in the 35% marginal tax bracket.What is the after-tax difference to Khalid between Khalid's original claim and Amber's offer?
A) Amber's offer is $30,000 less. (- $100,000 punitive damages + $70,000 increased pain and suffering.)
B) Amber's offer is $10,500 less. [($30,000 ´ .35) = $10,500].
C) Amber's offer is $19,500 less. [$30,000(1 - .35) = $19,500].
D) Amber's offer is $5,000 more. [$70,000 - (1 - .35)($100,000) = $65,000].
E) None of the above.
Q2) Ashley received a scholarship to be used as follows: tuition $9,000; room and board
$6,000; and books and laboratory supplies $2,000.Ashley is required to include only $6,000 in her gross income.
A)True
B)False
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Chapter 6: Deductions and Losses: in General
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Q1) LD Partnership,a cash basis taxpayer,purchases land and a building for $200,000 with $150,000 of the cost being allocated to the building.The gross receipts of the partnership are less than $100,000.LD must capitalize the $50,000 paid for the land,but can deduct the $150,000 paid for the building in the current tax year.
A)True
B)False
Q2) Briefly discuss the disallowance of deductions for capital expenditures.
Q3) A vacation home rented for 180 days and used personally for 16 days is classified in the personal/rental use category.
A)True
B)False
Q4) In order to protect against rent increases on the building in which she operates a dance studio,Mella signs an 18-month lease for $18,000.The lease commences on November 1,2011.How much of the $18,000 payment can she deduct in 2011 and 2012?
a.If Mella is an accrual basis taxpayer?
b.If Mella is a cash basis taxpayer?
Q5) For a vacation home to be classified in the primarily rental use category,what attributes must be present?
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Chapter 7: Deductions and Losses: Certain Business
Expenses and Losses
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Q1) For tax years beginning in 2011,the domestic production activities deduction (DPAD)for a sole proprietor is calculated by multiplying 9% times the lesser of (1)qualified production activities income (QPAI)or (2)taxable income or alternative minimum taxable income.
A)True
B)False
Q2) Alma is in the business of dairy farming.During the year,one of her barns was completely destroyed by fire.The adjusted basis of the barn was $90,000.The fair market value of the barn before the fire was $75,000.The barn was insured for 95% of its fair market value,and Alma recovered this amount under the insurance policy.Alma has adjusted gross income for the year of $40,000 (before considering the casualty).Determine the amount of loss she can deduct on her tax return for the current year.
A) $3,750.
B) $14,650.
C) $14,750.
D) $18,750.
E) None of the above.
Q3) How is qualified production activities income (QPAI)calculated?
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Q4) Why was the domestic production activities deduction (DPAD)enacted by Congress?
Chapter 8: Depreciation, cost Recovery, amortization, and Depletion
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Q1) On February 21,2011,Joe purchased new farm equipment for $600,000.Joe has made an election to not have the uniform capitalization rules apply to his farming business.He elects not to take additional first-year depreciation.If Joe elects § 179,what is the maximum write-off for this purchase for 2011?
Q2) Discuss the beneficial tax consequences of an SUV not being classified as a passenger automobile.
Q3) On February 15,2011,Martin signed a 20-year lease on a commercial building.In March 2011,Martin purchased and placed in service seven-year class assets costing $400,000.In June 2011,Martin paid $200,000 for qualified leasehold real property improvements.Martin desires to take the maximum cost recovery deduction with respect to the assets in 2011.Assuming taxable income is not a limitation,determine Martin's maximum cost recovery for 2011.
Q4) Discuss the tax consequences of listed property being used for the production of income compared to being used in a trade or business.
Q5) The costs of leasehold improvements owned by the lessee on residential rental real estate are recovered over a 27.5-year MACRS recovery period. A)True B)False
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Chapter 9: Deductions: Employee and
Self-Employed-Related Expenses
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Q1) In which,if any,of the following situations is the automatic mileage available?
A) A limousine to be rented by the owner for special occasions (e.g., weddings, high school proms).
B) The auto belongs to taxpayer's mother.
C) One of seven cars used to deliver pizzas.
D) MACRS statutory percentage method has not been claimed on the automobile.
E) None of the above.
Q2) Which of the following expenses,if any,qualify as deductible?
A) Contributions to a Coverdell Education Savings Account (CESA).
B) Contributions to a qualified tuition program (§ 529 plan).
C) Job hunting expense of FBI agent who applies for the job of city manager of Beaumont (TX).
D) Contribution to a Roth IRA.
E) None of the above.
Q3) Jacob is a landscape architect who works out of his home.He wonders whether or not he will have nondeductible commuting expenses when he drives to the locations of his clients.Please comment.
Q4) In terms of income tax treatment,what is the difference between common law and statutory employees?
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Chapter 10: Deductions and Losses: Certain Itemized
Deductions
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Q1) On December 31,2011,Lynette used her credit card to make a $500 contribution to the United Way,a qualified charitable organization.She will pay her credit card balance in January 2012.If Lynette itemizes,she can deduct the $500 in 2011.
A)True
B)False
Q2) Sergio was required by the city to pay $2,000 for the cost of new curbing installed by the city in front of his personal residence.The new curbing was installed throughout Sergio's neighborhood as part of a street upgrade project.Sergio may not deduct $2,000 as a tax,but he may add the $2,000 to the basis of his property.
A)True
B)False
Q3) Employee business expenses for travel qualify as itemized deductions subject to the 2% floor if they are not reimbursed.
A)True
B)False
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Chapter 11: Investor Losses
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Q1) Several years ago,Joy acquired a passive activity.Until 2009,the activity was profitable.Joy's at-risk amount at the beginning of 2009 was $250,000.The activity produced losses of $100,000 in 2009,$80,000 in 2010,and $90,000 in 2011.During the same period,no passive income was recognized.How much is suspended under the at-risk rules and the passive loss rules at the beginning of 2012? At-risk Passive loss
A) $0 $270,000.
B) $20,000 $250,000.
C) $30,000 $240,000.
D) $260,000 $10,000.
E) None of the above.
Q2) In the current year,Rich has a $40,000 loss from a business he owns.His at-risk amount at the end of the year,prior to considering the current year loss,is $24,000.He will be allowed to deduct the $40,000 loss this year if he is a material participant in the business.
A)True
B)False
Q3) Discuss the treatment given to suspended passive activity losses and credits.What happens to an activity's unused losses and credits when the activity is sold?
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Chapter 12: Tax Credits and Payments
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Q1) Refundable tax credits include the:
A) Foreign tax credit.
B) Tax credit for rehabilitation expenses.
C) Credit for certain retirement plan contributions.
D) Earned income credit.
E) None of the above.
Q2) Unused foreign tax credits can be carried back three years and forward fifteen years.
A)True
B)False
Q3) Any unused general business credit must be carried back 3 years and then forward for 20 years.
A)True
B)False
Q4) If the cost of a building constructed and placed into service by an eligible small business in the current year includes the cost of a wheelchair ramp,the cost of the ramp qualifies for the disabled access credit.
A)True
B)False
Q5) Discuss the treatment of unused general business credits.
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Chapter 13: Property Transactions
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Questions
Q1) Can related parties take advantage of the like-kind exchange provisions?
Q2) After 5 years of marriage,Dave and Janet decided to get a divorce.As part of the divorce settlement,Janet transfers to Dave the house she purchased prior to their marriage.Janet's adjusted basis for the house is $125,000 and the fair market value is $200,000 on the date of the transfer.What are the tax consequences to Janet and to Dave as a result of the transfer?
Q3) Patty's factory building,which has an adjusted basis of $325,000,is destroyed by fire on March 5,2011.Insurance proceeds of $475,000 are received on May 1,2011.She has a new factory building constructed for $450,000,which she occupies on October 1,2011.Assuming Patty's objective is to minimize the tax liability,calculate her recognized gain or loss and the basis of the new factory building.
Q4) Robert sold his ranch which was his principal residence during the current taxable year.At the date of the sale,the ranch had an adjusted basis of $460,000 and was encumbered by a mortgage of $200,000.The buyer paid him $500,000 in cash,agreed to take the title subject to the $200,000 mortgage,and agreed to pay him $100,000 with interest at 6 percent one year from the date of sale.How much is Robert's recognized gain on the sale?
Q5) What kinds of property do not qualify under the like-kind provisions?
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Chapter 14: Property Transactions: Capital Gains and Losses
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Q1) The § 1245 depreciation recapture potential does not reduce the amount of the charitable contribution deduction under § 170.
A)True
B)False
Q2) Depreciation recapture under § 1245 and § 1250 is reported on Form 4797.
A)True
B)False
Q3) Jonah owned a rental building (but not the land)that was destroyed by a fire.The building was insured and Jonah has a $66,000 gain because his insurance recovery exceeded his adjusted basis for the building.Jonah does not intend to replace the building.Jonah had taken $45,000 of depreciation on the building,has no § 1231 lookback loss,has no other § 1231 transactions for the year,and has no Schedule D transactions for the year.What is the final nature of Jonah's gain for the year and what tax rate(s)apply to the gain?
Q4) Section 1250 depreciation recapture will apply when accelerated depreciation was used on property used outside the United States and the property is sold at a gain.
A)True
B)False
Page 16
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Chapter 15: Alternative Minimum Tax
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Q1) The net capital gain included in an individual taxpayer's AMT base is not eligible for the alternative tax rate on net capital gain.This favorable alternative rate applies only in calculating the regular income tax.
A)True
B)False
Q2) Celia and Amos,who are married filing jointly,have one dependent and do not itemize deductions.They have taxable income of $82,000 and tax preferences of $53,000 in 2011.What is their AMT base for 2011?
A) $0.
B) $85,175.
C) $94,450.
D) $157,700.
E) None of the above.
Q3) If the AMT base is greater than $175,000,the AMT rate for an individual taxpayer is the same as the AMT rate for a C corporation.
A)True
B)False
Q4) Discuss the tax year in which an AMT adjustment is first required for an ISO.
Q5) Why is there a need for a second tax system called the alternative minimum tax?
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Chapter 16: Accounting Periods and Methods
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Q1) Which of the following statements regarding a 52-53 week tax year is correct?
A) The year-end must be the same day of the week in all years.
B) Some tax years will include more than 366 calendar days.
C) Every four years, there will be only 51 weeks.
D) Only a. and b. are correct.
E) a., b., and c. are correct.
Q2) A C corporation in the manufacturing business must use a calendar year as its tax year unless the corporation has a business reason for using a tax year that is not a calendar year.
A)True
B)False
Q3) Franklin Company began business in 2008 and has consistently used the cash method to report income from the sale of inventory in income tax returns filed for 2008 through 2011.As a result of an audit by the IRS,Franklin was required to change to the accrual method of accounting beginning with 2012.The net adjustment due to the change is a positive adjustment to income.
A)True
B)False
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Chapter 17: Corporations: Introduction and Operating Rules
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Q1) Sage,Inc.,a closely held corporation that is not a PSC,has a $110,000 passive loss,$90,000 of active income,and $25,000 of portfolio income during the year.How much of the passive loss can Sage deduct in the current year?
A) $0.
B) $25,000.
C) $90,000.
D) $110,000.
E) None of the above.
Q2) Olga's proprietorship earned a net profit of $95,000 during the year and she withdrew $70,000 of this profit.Olga must report $70,000 net income from the proprietorship on her individual income tax return (Form 1040).
A)True
B)False
Q3) Discuss the purpose of Schedule M-1.Give two examples of an addition and two examples of a subtraction that could be reported on Schedule M-1.
Q4) Generally,corporations with no taxable income must file a Form 1120.
A)True
B)False
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Chapter 18: Corporations: Organization and Capital Structure
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Q1) The use of § 351 is not limited to the initial formation of a corporation,and it can apply to later transfers as well.
A)True
B)False
Q2) A taxpayer transfers assets and liabilities to a corporation in return for its stock.If the liabilities exceed the basis of the assets transferred,the taxpayer will recognize gain to avoid having a negative basis in the stock.
A)True
B)False
Q3) Kim owns 100% of the stock of Cardinal Corporation.In the current year Kim transfers an installment obligation,tax basis of $30,000 and fair market value of $200,000,for additional stock in Cardinal worth $200,000.
A) Kim recognizes no taxable gain on the transfer.
B) Kim has a taxable gain of $170,000.
C) Kim has a taxable gain of $180,000.
D) Kim has a basis of $200,000 in the additional stock she received in Cardinal Corporation.
E) None of the above.
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Chapter 19: Corporations: Distributions Not in Complete
Liquidation
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Q1) In certain circumstances,the amount of dividend income recognized by a shareholder from a property distribution is not reduced by the amount of liability assumed by a shareholder.
A)True
B)False
Q2) Vulture Corporation distributes land (basis of $250,000,fair market value of $475,000)to Bonita,a shareholder,to carry out a qualifying stock redemption.The land is distributed subject to a $300,000 liability.Bonita had a basis of $25,000 in the shares redeemed.With respect to the redemption:
A) Vulture Corporation will recognize a gain of $50,000.
B) Vulture Corporation will recognize a gain of $225,000.
C) Bonita will recognize a gain of $450,000.
D) Bonita will have a basis of $175,000 in land.
E) None of the above.
Q3) An increase in the LIFO recapture amount must be added to taxable income to determine E & P.
A)True
B)False
Q4) Explain the stock attribution rules that apply in the case of stock redemptions.
Page 21
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Chapter 20: Corporations: Distributions in Complete
Liquidation and an Overview of Reorganizations
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Q1) Which of the following statements is correct with respect to the § 338 election?
A) The subsidiary corporation makes the § 338 election.
B) A qualified stock purchase occurs when a corporation acquires, in a taxable transaction, at least 80% of the stock (voting power and value) of another corporation within a 18-month period.
C) The subsidiary corporation must be liquidated pursuant to the § 338 election.
D) For purposes of the qualified stock purchase requirement, subsidiary corporation stock acquired by any member of an affiliated group that includes the parent corporation is considered acquired by the parent.
E) None of the above.
Q2) Sparrow Corporation purchased 90% of the stock of Warbler Corporation eight years ago for $1 million.In the current year,Sparrow liquidates Warbler and acquires assets with a basis to Warbler of $850,000 (fair market value of $1.2 million).Sparrow will have a basis in the assets of $850,000 (Warbler's basis in the assets),and a recognized loss of $150,000 ($1 million basis in Warbler stock - $850,000 carryover basis in assets).
A)True
B)False
Q3) Describe the requirements for and tax consequences of a § 338 election.
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Chapter 21: Partnerships
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Q1) The JPM Partnership is a US-based manufacturing company.JPM calculates the domestic production activities deduction (§ 199)and deducts that amount on its Form 1065.
A)True
B)False
Q2) Julie owns property that is treated as a capital asset in her hands.She contributed a parcel of land (basis $60,000; fair market value $58,000)to a real estate partnership,which will hold it as inventory.After three years,the partnership sells the land for $56,000.The partnership will recognize a $4,000 ordinary loss on sale of the property.
A)True
B)False
Q3) The MNO Partnership,a calendar year taxpayer,was formed on July 1 of the current year and started business on October 1.MNO incurred $30,000 in startup costs.MNO may deduct $5,000 and amortize the remaining $25,000 over 120 months starting in July.
A)True
B)False
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Chapter 22: S Corporations
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Q1) S corporation income is taxed at the ____________________ level and not at the ____________________ level. or
Q2) An S shareholder's stock basis is reduced by flow-through losses before accounting for distributions.
A)True
B)False
Q3) Straight debt issued in an S corporation year will not be treated as a second class of stock and will not disqualify an S election.
A)True
B)False
Q4) Depletion in excess of basis in property causes a(n)____________________ adjustment to an S shareholder's basis. or
Q5) Since loss property receives a ____________________ in basis without any loss recognition,S corporation distributions of loss property should be
Q6) Discuss the two methods of allocating S items to shareholders.
Q7) An S corporation is limited to ____________________ (how many?)shareholders.
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Chapter 23: Exempt Entities
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Q1) All exempt organizations which are subject to the unrelated business income tax must file Form 990-T (Exempt Organization Business Income Tax Return).
A)True
B)False
Q2) Federal agencies exempt from Federal income tax under § 501(c)(1)are not subject to the unrelated business income tax (UBIT).
A)True B)False
Q3) While the major objective of the Federal income tax law is to raise revenue,social considerations and economic objectives also affect the tax law.
A)True
B)False
Q4) Health,Inc.,a § 501(c)(3)exempt organization,engages in an excess benefit transaction.The amount of the excess benefit is $300,000.For the organization management,the participation in the excess benefit transaction was not willful and was due to reasonable cause.Calculate the amount of the excise tax (first-level tax)imposed under the intermediate sanctions provision.
Q5) Define a private foundation.
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Chapter 24: Multistate Corporate Taxation
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Q1) ____________________ describe(s)the degree of business activity that must be present before a taxing jurisdiction has the right to impose a tax on an entity's income.
Q2) States collect the most tax dollars from the corporate income tax.
A)True
B)False
Q3) The property factor includes land and buildings used for business purposes.
A)True
B)False
Q4) Typically exempt from the sales/use tax base is the purchase of tools by a manufacturer to make the widgets that it sells.
A)True
B)False
Q5) Typically,a sales/use tax is applied to a retail sale of ____________________ property.
Q6) The typical local property tax falls on both an investor's real estate and her stock portfolio.
A)True
B)False
26
Q7) An ad valorem property tax is based on the asset's current
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Chapter 25: Taxation of International Transactions
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Q1) A domestic corporation is one whose assets are primarily (> 50%)located in the U.S. A)True
B)False
Q2) Collins,Inc.received gross foreign-source dividend income of $250,000.Foreign taxes withheld on the dividend were $25,000 and no § 902 credit is available.Its worldwide taxable income for the tax year is $500,000.U.S.tax before the FTC is $175,000.Collins' current year FTC is $87,500.
A)True
B)False
Q3) U.S.individuals who receive dividends from foreign corporations may claim the deemed-paid foreign tax credit related to such dividends. A)True
B)False
Q4) In allocating interest expense between U.S.and foreign sources,a taxpayer must use the tax basis of the income-producing assets.
A)True
B)False
Q5) Discuss the primary purposes of income tax treaties.
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Chapter 26: Tax Practice and Ethics
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Sample Questions
Q1) Yang,a calendar year taxpayer,did not file a tax return for 2005 because she honestly believed that no additional tax was due.In 2011,Yang is audited by the IRS and the agent assesses a deficiency of $17,000 for tax year 2005.Yang need not pay this deficiency,since the statute of limitations expired on April 15,2009.
A)True
B)False
Q2) A CPA and his/her client hold a privilege of confidentiality from the IRS,as to their discussions about completing a tax return.
A)True
B)False
Q3) Last year,Ned's property tax deduction on his residence was $22,500.Although he lives in the same house,he tells his CPA that this year's taxes will be only $7,500.The CPA can use this estimate in computing Ned's itemized deductions,under the Statements of Standards for Tax Services.
A)True
B)False
Q4) The IRS processes about ____________________ million individual tax returns every year.
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Chapter 27: The Federal Gift and Estate Taxes
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Q1) In arriving at the taxable estate,expenses incurred in administering community property are deductible only in proportion to the deceased spouse's interest in the community.
A)True
B)False
Q2) The IRS does not consider property settlements in consideration of marriage as being transfers for valuable consideration.Consequently,such prenuptial settlements are subject to the Federal gift tax.Why,then,are property settlements incident to divorce exempt from the gift tax?
Q3) Harry and Brenda are husband and wife.Using his funds,Harry purchases real estate which he lists as: "Harry and Brenda,tenants by the entirety with right of survivorship." If Harry dies first,all of the real estate will be included in his gross estate.
A)True
B)False
Q4) Under the alternate valuation date election,each asset in the gross estate is valued at the lesser of the date of death value or six months thereafter.
A)True
B)False
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Chapter 28: Income Taxation of Trusts and Estates
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Q1) The Williamson Estate generated distributable net income (DNI)this year of $120,000,one-third of which was tax-exempt interest,and the balance of which was long-term capital gain.Muffy Williamson,the sole income beneficiary of the estate,received a distribution of the entire $150,000 accounting income of the entity.How is this distribution accounted for by Muffy?
A) $150,000 ordinary income.
B) $120,000 ordinary income.
C) $80,000 long-term capital gain, $40,000 exempt interest.
D) $100,000 long-term capital gain, $50,000 exempt interest.
Q2) Gain or loss is recognized by a trust when it distributes a non-cash asset. A)True B)False
Q3) Your client Pryce is one of the income beneficiaries of the Santiago Trust.Pryce says to you,"I want all of the exempt interest income from Santiago to be allocated to me,as I am the income beneficiary who is subject to the highest marginal Federal income tax rate." How do you respond to Pryce's request?
Q4) The Circle Trust has some exempt interest income for the year.How does this investment income affect Circle's deduction of its fiduciary fees? Charitable contributions?
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