Charitable contributions for corporation is limited upto 10% of income before considering charitable contribution and other deductions like dividend received deductions and Nol deduction.
In given case OCC corporation has income of $1500000. Maximum deduction is allowed upto 10% of income $ 150000 remaining can be carryforward up to 5 years.
In second year income is $ 300000 and carryforward amount is $ 50000. Maximum deduction upto $ 30000.
So remaining $20,000 is book-tax difference.
Book - tax difference is favorable as taxable income is high than book income.
Difference is temporary as IRS allows future deductions from taxable income.
Required information [The following information applies to the questions displayed below.] In year 1 (the current...
Required information (The following information applies to the questions displayed below.) In year 1(the current year), OCC Corp. made a charitable donation of $200,000 to the Jordan Spieth Family Foundation (a qualifying charity). For the year, OCC reported taxable income of $1,500,000 before deducting any charitable contributions, before deducting its $20,000 dividends received deduction, and before deducting its $40,000 NOL carryover from last year. c. In year 2, OCC did not make any charitable contributions. It reported taxable income of...
In year 1 (the current year), OCC Corp. made a charitable donation of $200,000 to the Jordan Spieth Family Foundation (a qualifying charity). For the year, OCC reported taxable income of $1,500,000 before deducting any charitable contributions, before deducting its $20,000 dividends received deduction, and before deducting its $40,000 NOL carryover from last year. a. What amount of the $200,000 donation is OCC allowed to deduct for tax purposes in year 1? b. In year 2, OCC did not make...
. . . . . Required information [The following information applies to the questions displayed below.] . . . . . . . . . . . . . . . . . . In year 1 (the current year), OCC Corp. made a charitable donation of $200,000 to the Jordan Spieth Family Foundation (a qualifying charity). For the year, OCC reported taxable income of $1,500,000 before deducting any charitable contributions, before deducting its $20,000 dividends received deduction, and before...
In 2019, Oak Inc. made a charitable donation of $100,000 to the American Red Cross (a qualifying charity). For the year, Oak reported taxable income of $550,000 which included a $100,000 charitable contribution deduction (before limitation), a $50,000 dividends received deduction and a $10,000 net operating loss carryover from year 2018. What is Oak Inc.’s charitable contribution deduction for 2019? Description Amount Taxable Income $550,000 Charitable Contribution Dividend Received Deduction NOL Carryover Revised Taxable Income Charitable Contribution % Limitation Charitable...
In year 1 (the current year), LAA Inc. made a charitable donation of $140,250 to the American Red Cross (a qualifying charity). For the year, LAA reported taxable income of $503,000, which included a $140,250 charitable contribution deduction (before limitation), a $70,000 dividends received deduction, and a $12,800 net operating loss carryover from year 0. What is LAA Inc.’s charitable contribution deduction for year 1?
In year 1 (the current year), LAA Inc. made a charitable donation of $147,000 to the American Red Cross (a qualifying charity). For the year, LAA reported taxable income of $638,000, which included a $147,000 charitable contribution deduction (before limitation), a $66,000 dividends received deduction, and a $16,300 net operating loss carryover from year 0. What is LAA Inc.’s charitable contribution deduction for year 1?
In year 1 (the current year), LAA Inc. made a charitable donation of $145,500 to the American Red Cross (a qualifying charity). For the year, LAA reported taxable income of $557,000, which included a $145,500 charitable contribution deduction (before limitation), a $70,500 dividends received deduction, and a $16,500 net operating loss carryover from year 0. What is LAA Inc.’s charitable contribution deduction for year 1?
In year 1 (the current year), LAA Inc. made a charitable donation of $115,500 to the American Red Cross (a qualifying charity). For the year, LAA reported taxable income of $590,000, which included a $115,500 charitable contribution deduction (before limitation), a $74,000 dividends received deduction, and a $13,500 net operating loss carryover from year 0. What is LAA Inc.’s charitable contribution deduction for year 1?
n year 1 (the current year), LAA Inc. made a charitable donation of $100,000 to the American Red Cross (a qualifying charity). For the year, LAA reported taxable income of $550,000, which included a $100,000 charitable contribution deduction (before limitation), a $50,000 dividends received deduction, and a $10,000 net operating loss carryover from year 0. What is LAA Inc.’s charitable contribution deduction for year 1?
In year 1(the current year). LAA Inc. made a charitable donation of $153.750 to the American Red Cross (a qualifying charity). For the year, LAA reported taxable income of $608,000, which included a $153.750 charitable contribution deduction (before limitation), a $60,250 dividends received deduction, and a $10,400 net operating loss carryover from year 0. What is LAA Inc.'s charitable contribution deduction for year 1? Charitable contribution deduction for year 1