CPAnet Forum: charitable cont

Active Topics

Memberlist

Help

REG STUDY GROUP
CPAnet Forum : REG STUDY GROUP

Topic: charitable cont (

Topic Closed)

Author

Message

<< Prev Topic | Next Topic >>

aimtobeacpa
Major Contributor

Joined: 10 Dec 2009
Online Status: Offline
Posts: 657

Posted: 25 May 2011 at 10:01 \| IP Logged

can someone confirm what amt should be deducted for individual and for corp
suppose charitable contribution is $62000

in one of question &nbs p; &nbs p; &nbs p; tax &nb sp; book

Charitable contributions	62,569		80,000
Pretax income	563,124		583,000

Although InterTax donated $80,000 to charity during the year, the amount allowable for the tax purposes is limited to 10% of taxable income before the contributions deduction. InterTax's allowable contributions deduction of $62,569 has already been computed and is shown in the Tax column of the Income Statement ($62,569 + $563,124) x 10% = $62,569.
i did not understand why charitable cont added to pre-tax income?

__________________
BEC-74,82(lost credit),78
FAR-67,80
AUD-75
REG-68,72,79

choisoo3
Newbie
Newbie

Joined: 01 Mar 2011
Online Status: Offline
Posts: 24

Posted: 25 May 2011 at 10:03 \| IP Logged

for individual, its 50% of AGI.

for corp, its 10% of TI before special deduction.

aimtobeacpa
Major Contributor

Joined: 10 Dec 2009
Online Status: Offline
Posts: 657

Posted: 25 May 2011 at 10:07 \| IP Logged

@choisoo3 thanks...can u tell in above q, they have taken pretax income and added to charitable cont?

__________________
BEC-74,82(lost credit),78
FAR-67,80
AUD-75
REG-68,72,79

cpain180days
Newbie
Newbie

Joined: 22 Sep 2010
Location: United States
Online Status: Offline
Posts: 22

Posted: 25 May 2011 at 12:23 \| IP Logged

Because 62,569 has been deducted to arrive at the the pretax income.

__________________
11/13/2010 FAR 89
11/30/2010 BEC 85
4/1/2011 AUD 96
5/27/2011 REG 79
Arkansas
Bisk books only:FAR-2008,BEC-2010,AUDREG-2011

aimtobeacpa
Major Contributor

Joined: 10 Dec 2009
Online Status: Offline
Posts: 657

Posted: 25 May 2011 at 12:28 \| IP Logged

thanks..

__________________
BEC-74,82(lost credit),78
FAR-67,80
AUD-75
REG-68,72,79

Sorry, you can NOT post a reply.
This topic is closed.

Printable version

You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot delete your posts in this forum
You cannot edit your posts in this forum
You cannot create polls in this forum
You cannot vote in polls in this forum