- 6 -
made between June 5, 2001, and April 2, 2002, which includes the
$72,000 amount in dispute.
On February 11, 2002, the corporate office of HJ Builders
was burglarized. The police report made by Mr. Wright lists the
items reported stolen or destroyed in the incident. No
promissory notes were reported stolen or destroyed.
Charitable Contributions
The Wrights are active and contributing members of their
church community, and Mr. Wright is especially involved as a
leader in church youth group activities. The Wrights wrote
personal checks to their church totaling $28,750 in 2001 but
deducted only $18,000 in charitable contributions on their 2001
joint income tax return.
Additional checks were written from an HJ Builders account
to the Wrights’ church in the amount of $4,120 to fund a youth
trip and to a bus company in the amount of $1,276 to facilitate
the trip. HJ Builders did not receive a written acknowledgment
from the Wrights’ church indicating that the corporation had made
any charitable contributions to the church, and no charitable
contribution deductions were claimed by HJ Builders on its tax
return for 2002. Instead, the amounts expended by HJ Builders to
and for the benefit of the church youth group were deducted as
various business expenses on the corporation’s income tax return.
The $4,120 disbursement was deducted in the corporate records as
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011