December 07, 2015
Newsday quotes Tax & Business Services Partner Diane Giordano in an article about the deductibility of corporate donations.
By Jamie Herzlich
For many companies, year-end is prime time for charitable giving.
It can position your business in a positive light, and offer significant tax benefits as well.
But not every charity is created equal for tax purposes. To maximize those benefits you need a strategy.
Keep in mind, though, there are different rules for different corporate structures, says Diane Giordano, a tax and business services partner at Marcum LLP in Melville.
For instance, for a C-corporation, charitable deductions for the year can't exceed 10 percent of taxable income, she says. For S-corporations, the deduction is reported by the individual and is limited to 50 percent of adjusted gross income for cash contributions, she notes.
Also if a C-corp donates inventory, the company would generally be able to deduct the cost of the item plus half the difference between the cost and the selling price, while an S-corp would only be able to deduct the lesser of cost or fair market value, explains Giordano.