2021 – 2/01 The Consolidated Appropriations Act (CAA), enacted on Dec. 27, 2020, allows corporations to deduct up to 100% of taxable income for charitable contributions for disaster relief. The IRS recently offered more details on requirements for the temporary deduction: 1) Qualified contributions must be paid by a corporation from Jan. 1, 2020, through Feb. 25, 2021; 2) cash contributions to most charitable organizations qualify for the increased limit; 3) “qualified disaster areas” don’t include declarations related to COVID-19; and 4) contributions made to a supporting organization or to establish or maintain a donor-advised fund don’t qualify. Contact us for more information. (IR 2021-27)
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