When corporations make charitable contributions the rules are different than those that govern...
Question:
When corporations make charitable contributions the rules are different than those that govern individual donations.
What kind of limits apply to corporations?
Charitable contribution
A charitable contribution is a donation made by an individual or a corporate to a non-profit organization. Donations can be in the form of money, gifts, etc. the charitable contribution is tax-deductible. It is help offered to society by an individual or a corporate.
Answer and Explanation: 1
Become a Study.com member to unlock this answer! Create your account
View this answerBoth the individuals and corporate, S-corporate can make charitable donations from the income generated from them. Gifts given to an individual is not...
See full answer below.
Ask a question
Our experts can answer your tough homework and study questions.
Ask a question Ask a questionSearch Answers
Learn more about this topic:
Get access to this video and our entire Q&A library
Income Tax: Tax Liability & Deductions
from
Chapter 3 / Lesson 5
17K
Learn what income tax liability is. Find out what taxable and adjusted gross income are, discover how to calculate tax liability, and examine common deductions.
Related to this Question
- Explain how Charitable Contributions made at the S-Corporation level are treated for tax purposes.
- Explain how charitable contributions come into play in determining corporate taxable income.
- What limits are placed on the selection of a tax year of an S corporation? How do these limits differ from those applicable to C corporations and partnerships?
- What regulatory bodies are involved in accounting for governmental and not-for-profit entities, and how and what do these regulatory bodies regulate?
- What are the differences between governmental organizations and nonprofit organizations?
- What differences are there in terms of the criteria an organization must meet to be designated tax-exempt for a non-profit? What governing body decides on these criteria?
- What is the difference between private and governmental not-for-profit organizations and who oversees the accounting requirements for each type of organization?
- What is a flow-through entity, and what effect does this designation have on how business entities and their owners are taxed?
- Why are tax-exempt organizations prohibited from making political contributions or support political candidates?
- What constitutes a pledge or contribution for not-for-profit organizations?
- What rule should a firm follow when making financing decisions? How can the managers of the firms create valuable financing opportunities?
- Chapter 14 1. Please explain how charitable contributions come into play in determining "corporate" taxable income.
- 1. For what reasons would a corporation restrict its retained earnings? 2. How does it report a restriction?
- What is meant by variance power? Suppose that a charitable foundation receives a gift that the donor specifies must be used to support the college education of a particular individual. Of what relevance is variance power to how the foundation accounts for
- What are the distinguishing characteristics between a public charity and a private foundation?
- Why did the government create the personal holding tax on corporations, and how is the tax calculated?
- (a) Define pass-through taxation. (b) What business entities have pass-through taxation?
- How and why do corporations utilize different forms of equity?
- What is meant by "variance power?" Suppose that a charitable foundation receives a gift that the donor specifies must be used to support the college education of a particular individual. What is the relevance of "variance power" in how the foundation acco
- What are the different types of dividends corporations may issue?
- What are the different types of dividends that corporations may issue?
- What is the difference between legal entities and accounting entities?
- What is your perception of ethical behavior in modern day corporations?
- What is the defining distinction between for-profit businesses and not-for-profit entities, including governments? What are the implications of this distinction for financial reporting?
- What might be the consequences for smaller companies of not complying with corporate governance principles?
- In what way is a corporation also considered an individual?
- Describe two ways that corporations make payouts to stockholders.
- What are the legal principles which govern the limitation of action in tort?
- What are the limitations in relation to measurement of factors relevant to assets and profit regarding how well companies use their resources to generate wealth?
- What are the factors needed for determining a fee for nonprofit organizations? Explain your reasoning.
- What are the different types of equity instruments that corporations can issue?
- What rules do societies develop to govern the conduct of and relationships among its members? a) Precepts b) Statutes c) Laws d) Regulations
- Describe the three different forms of business organizations (proprietorships, partnerships, and corporations).
- How can corporations ensure that their employees behave ethically?
- Consider that your company is a nonprofit entity and a governmental entity. Discuss the reporting requirements for each and how they differ from a for-profit entity. A. Explain how you would address compliance with GAS in nonprofit and governmental finan
- What are regulatory accounting principles and how do they relate to enterprise fund accounting?
- (a) What are regulatory accounting principles? (b) How do they relate to enterprise fund accounting?
- What types of limitations are there in accounting information systems, and how do businesses account for those limitations?
- What are the various categories that come under a private not-for-profit organization?
- Describe at least two tax benefits that are available to corporations that are not available to individuals.
- Which of the following business types is most common as measured by the amount of business transacted? a. Government entities b. Proprietorships c. Partnerships d. Corporations
- Explain the term business without boundaries. How is this changing the nature of organizations and who accomplishes various business procedures?
- Nonprofit and Governmental: Consider that your company is a nonprofit entity and a governmental entity. Discuss the reporting requirements for each and how they differ from a for-profit entity. A. Exp
- How do the stock ownership requirements for an affiliated group of corporations differ from those for a controlled group?
- What privileges do preferred stockholders have over common stockholders?
- What type of business entity makes a special election and is generally created for the public good?
- What are the major differences between a 501(c)(3) tax-exempt organization and a 501(c)(7) tax-exempt organization?
- What is block ownership? How does it affect corporate governance?
- What type of organization is dependent on proposals? a) Smaller profit-making organizations b) All of these c) Nonprofit organizations d) Large profit-making organizations
- Consider that a company is a nonprofit entity and a governmental entity. Discuss the reporting requirements for each and how they differ from a for-profit entity. A. Explain how you would address comp
- Identify and explain the characteristics that distinguish governments and not-for-profit entities from business entities.
- What are firms' responsibilities to society regarding corporate citizenship, ethics, and shareholder wealth?
- What are the principal differences between the nature of contemporary and early capitalist corporations?
- What issues arise when the IRS considers the debt vs. equity of a corporation?
- Explain how you would address compliance with GAS in nonprofit and governmental financial statements. How does this differ from a for-profit entity?
- What are the three characteristics of a limited liability company that differ from those of a partnership?
- (a) What are three characteristics of a sole proprietorship? (b) Are these characteristics the same as or different from those of a partnership? (c) What are three characteristics of a limited liability company that differs from those of a partnership?
- Why is it advantageous for firms to organize themselves as a set of separate legal entities? How do consolidated financial statements benefit these firms?
- Which of the following is not an accounting standards relevant to private not-for-profit entities. a) FASB 101 b) FASB 93 c) FASB 117 d) FASB 116
- Identify and explain when should the following company recognize revenue. Bank of America: Bank of America is a banking institution. It lends money to individuals and corporations and invests excess funds in marketable securities.
- Are there differences from how for-profit businesses recognize expenses versus not-for-profit organizations?
- What are the differences in taxation of the four different types of organizations?
- Why do we need all three types of organizations? Why not just all government or all non-profits or all for-profits? Explain.
- Explain the term "business without boundaries." How is this changing the nature of organizations, and who accomplishes various business processes?
- How should bribes and kickbacks be treated for tax purposes? Are they a deduction and are they allowed?
- Describe the main aspects of the regulatory environment which will protect the public from fraud within corporations.
- What is the rationale for granting business organizations intellectual property rights?
- For what reason do corporations retain earnings in the business?
- What are the distinguishing characteristics between a public charity and a private foundation? What is a public support test and how does it relate to public charities and private foundations?
- (a) What is the branch profits tax? (b) Explain the congressional intent behind its enactment.
- Why does Congress require shareholders to control a corporation to receive preferential tax treatment?
- Explain how regulatory agencies and legal systems affect corporate governance.
- What could corporation do to prevent corporate fraud?
- Does GGP's charitable contributions carry over to 2017? If so, how much? How long can it be carried over?
- What are the different types of business organizations? Please state the similarities and differences between them.
- Corporations offer the advantage of limited liability. Explain what is meant by that statement.
- Which forms of business organization are considered to be separate accounting entities?
- What is the term used to describe an organization in which positions are awarded based on one's ability and skill? A. Bureaucracy B. Oligarchy C. Meritocracy D. Corporation
- Explain the differences in accounting between private and government not-for-profit organizations.
- Accountants work for all sorts of governments, not-for-profits, and for-profit entities. A) How might their work differ between the three types of firms? How might it be similar? B) Would you prefer to work in a for-profit or not-for-profit environment? W
- What are the financial and regulatory limitations of each type of negotiable instrument and who can issue them?
- Briefly describe the legal rights and privileges of common stockholders.
- What is the primary agency that governs "publicly owned" companies?
- How do audits of governmental agencies differ from those of not-for-profit? How are these audits different from those of organizations that operate for profit?
- What is the difference between a privately-held corporation and a publicly-held corporation?
- What is the concept of fiduciary duty in company and association law? To whom are such duties owed in corporate law? Explain your answer.
- How is an S corporation different from other companies?
- Define the term corporate governance and explain why good corporate governance is important to shareholders and other corporate stakeholders.
- What are some examples of government and not-for-profit organizations?
- Discuss how directors may be liable for insolvent trading under the Corporations Act 2001.
- How accounting policies that differ between companies in same industry can directly affect the measurement of profit, total assets? Explain with examples.
- What are the signs that a company is insolvent, and what actions and proactivity is required of the directors in these circumstances?
- Explain how the equity section of a balance sheet differs among sole proprietorships, partnerships, and corporations.
- What does federal law require if a company's stock is publicly traded?
- What is an example of an unethical act that may occur within the finance/accounting department, and how would we prevent such actions from occurring?
- What are the legislated aspects of the Code of Professional Conduct and how does it apply to tax and BAS agents?
- The primary revenue source for not-for-profit organizations is contributions. Define what a contribution is and discuss how the different types of contributions are recognized as revenue (i.e. cash contributions, unconditional promise to give, conditional
- What is the broad tax policy behind distinguishing the separately stated and non-separately stated income? What is Congress trying to achieve? What problems does it prevent? What problems does it cause?
- Why are partnerships different than a limited liability company or an S corporation?
- 1. What characteristics distinguish nonbusiness organizations from profit-oriented enterprises? 2. Define a fund as the term is applied in accounting for the activities of governmental units and othe
Explore our homework questions and answers library
Browse
by subject