On December 20, 2011, 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 March 15, 2012, may be claimed as a deduction for tax year 2011.

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Charitable deductions for accrual basis taxpayers are generally deductible in the year in which they are authorized, even if the payment is not made until the following year. Therefore, Quail Corporation can claim the deduction for tax year 2011, despite making the payment in 2012.

On December 20, 2011, the Directors of Quail Corporation (An