Are Form 1120 Schedule M 3 Contribution 2019-2024

This is a review of the homework that was to calculate the charitable contribution deduction. They give you a bunch of examples, so charitable contribution is limited to 10 percent of the taxable income before DRD and NOLs. So the very first one is: We have a charitable contribution of $4,000. The taxable income before charity contribution is $50,000. The charitable contribution limit, which is 10% of this, is $5,000. The charitable contribution deduction is $4,000, as long as it's not above the limit. Alright, let's do B. We have a taxable income before charitable deduction, which was $50,000. The charitable deduction limit is 10%. The charitable contribution was $4,800, but this one is limited. The deduction is limited to $5,000. Alright, let's try C. Okay, we have a charitable contribution of $4,800. We have taxable income before charitable contribution of $50, and then I have an NOL. So NOLs are included in taxable income to determine charitable contribution limitation. Therefore, limit equals the income times 10%. So the charitable contribution deduction is $4,800 that they contribute because that's less than $5,000. And then we have our final one, D. So here we have a charitable contribution of $4,800. Taxable income before contribution is $40,000. And taxable capital loss carry-back. Capital loss carry-backs are not included in income to calculate charitable deduction limit, so we add it back. So we have taxable income plus capital loss carry-back. So we have $40,000 plus $5,000 in capital loss carry-back. Taxable income for charity limit, we add these two together. We get $45,000 limit, which is 10% of this. The charitable contribution deduction equals the lesser of the charitable contribution or the limit, which is $4,500. This is an overview of charitable deduction limitations.