Charitable Contributions

The Tax Cuts and Jobs Act of 2017 changed charitable giving. Since the standard deduction almost doubled in 2018, it means individual taxpayers, including owners of businesses that are not corporations, have less incentive to give to charities. If you want to give and get a deduction, you must itemize all charitable deductions, in an effort to getting above the standard deduction amount. However, C corporations with excess inventory may donate surplus property to charitable organizations and receive a tax deduction. For example, if you contribute food or medical supplies to a charity that provides for the homeless, you may deduct not only the cost of the goods, but also half of the lost profit (not to exceed twice the cost). Corporate contribution deductions are limited to 10% of the corporation's taxable income before considering the donation.