Video: Charitable Contributions Deduction

In this lesson, Nick Palazzolo, CPA, breaks down the ins and outs of the Charitable Contributions Deduction for corporations, guiding through the rules and limitations that apply. He clarifies the 10% taxable income ceiling for deductions, with practical examples to illustrate how contributions beyond this limit can be carried forward for up to five years. From corporations with positive income to those with negative taxable income, Nick maps out various scenarios and how the deduction rules differ in each. He ensures that after this walkthrough, handling similar problems on exams will be like second nature. Finally, Nick addresses the topic of expiring carryforwards, demonstrating the importance of timing when applying these deductions, and the consequences of missing the opportunity to do so.