What is its tax liability as a result of the election

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Reference no: EM132663625

Problem - Helpers, Inc., a qualifying § 501(c)(3) organization, incurs lobbying expenditures of $250,000 for the taxable year and grass roots expenditures of $0. Exempt purpose expenditures for the taxable year are $1,200,000. Helpers elects to be eligible to make lobbying expenditures on a limited basis.

Required -

a. What amount of lobbying expenditures is Helpers allowed to make tax-free under the terms of the election?

b. What is its tax liability as a result of the election?

c. Express your answer to part (b) as a Microsoft Excel formula.

Reference no: EM132663625

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