In an article entitled “Closer Look,” an IRS official discusses business charitable deductions. Sunita Lough, Commissioner of the IRS Tax Exempt and Government Entities Division described two tax-reduction opportunities. C corporations that make charitable cash contributions to eligible charities in 2021 may take a deduction up to a limit of 25% of taxable income. “But keep in mind that it doesn’t automatically apply, so C corporations must elect” the higher limit for each contribution, Lough said. Also, businesses that donate from their food inventory to eligible charities by year-end can take an increased tax deduction of 25% (up from 15%). For more details: http://bit.ly/3GUaxG0 www.mjscpa.com/
