S-Corp Charitable Contributions

Forum|Forum|1 year ago
May 22, 2024
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Is there any advantage to donating to Charitable organizations in the S-Corp versus personal?

Ask the Experts - Biz Tax - May 2024

Best answer by OlgaS

Charitable contributions made by S-Corporations flows to schedule K-1 for Shareholders, after that they flows to Itemized deduction on the individual tax return (form 1040, Schedule A). So from the Federal view, it doesn't make a difference.

But, some states allow you have additional adjustment of your income before tax calculation due to charitable contributions. Please check your state rules.

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KimberW

Charitable contributions made by an S-Corporation are "passed through" to the owner(s) of the company. The company includes the information on its tax return on Schedule K as a "separately stated" item. The owner(s) of the company will divide the charitable contribution among themselves. Each owner will then take their share of the company's charitable contribution on their personal return.

From a tax perspective, there is no difference between an S-Corp making a charitable contribution or its owners making the contribution themselves.

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OlgaSAnswer

But, some states allow you have additional adjustment of your income before tax calculation due to charitable contributions. Please check your state rules.

Thank you for participating in this event!