Question

Which of these people will be eligible for a tax deduction?Select one of the options below as your answer:A. Gareth, who gets interest income from banksB. Nancy, who gets dividends from stocks and mutual fundsC. Miles, who makes cash contributions to charities

Answer 1

The correct answer to this question is this one: "C. Miles, who makes cash contributions to charities." The person who will be eligible for a tax deduction is Miles, who makes cash contributions to charities. Companies have this so called Corporate Social Responsibility just to have tax privileges.

Answer 2

I believe the answer is: C. Miles, who makes cash contributions to charities

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Tax deduction refers to the amount of money that could be excluded from tax payment. Since charities technically increase the wellness of other people in the country, government in most countries would include Charities as a tax deduction to encourage this action.