Identify which of the following statements is true.
A)The charitable contribution deduction is calculated on a separate return basis for each group member, and the separate company deductions of the individual group members are totaled to arrive at the consolidated deduction.
B)An affiliated group member cannot carry over any unused charitable contribution deduction from a consolidated return year to a separate return year if the member leaves the group prior to the end of the current consolidated return year.
C)Charitable contributions, which cannot be deducted in a consolidated return due to the 10% deduction limitation, can be carried forward indefinitely by the affiliated group.
D)All of the above are false.

Question

Quizplus · Accepted Answer

All of the statements are false. The charitable contribution deduction is calculated on a consolidated basis for the entire affiliated group, and the 10% limit applies to the consolidated deduction. An affiliated group member can carry over any unused charitable contribution deduction from a consolidated return year to a separate return year if the member leaves the group prior to the end of the current consolidated return year. Charitable contributions, which cannot be deducted in a consolidated return due to the 10% deduction limitation, cannot be carried forward indefinitely by the affiliated group.

Identify Which of the Following Statements Is True