Corporations and charitable gifts
A corporation that files its own tax return can deduct charitable gifts up to 10% of its taxable income.
Taxable income for this purpose is calculated without the following.
- The deduction for charitable contributions.
- The dividends-received deduction.
- The deduction allowed under Internal Revenue Code Section 249 [relating to deduction of bond premium on repurchase].
- The domestic production activities deduction.
- Any net operating loss carryback to the tax year.
- Any capital loss carryback to the tax year.
Corporations are also entitled to carryover unused deductions for five years.