On December 16, 2016, the directors of Quail Corporation (an accrual basis, calendar year taxpayer) authorized a cash donation of $5,000 to the American Cancer Society, a qualified charity. The payment, which is made on April 11, 2017, may be claimed as a deduction for tax year 2016.

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According to the tax law, a charitable contribution is deductible in the year in which it is paid, which in this case is 2017. However, the authorization of the donation in 2016 satisfies the requirement that the contribution must be made by the end of the tax year for which it is claimed. Therefore, Quail Corporation may claim the $5,000 cash donation as a deduction for tax year 2016.

On December 16, 2016, the Directors of Quail Corporation (An