Heron Corporation,a calendar year C corporation,had an excess charitable contribution for 2016 of $5,000.In 2017,Heron made a further charitable contribution of $20,000.Heron's 2017 deduction is limited to $15,000 (10% of taxable income).The 2017 contribution must be applied first against the $15,000 limitation.

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This is correct. According to the IRS regulations, any excess charitable contributions from a previous year can be carried forward for up to five years and used to offset future charitable contributions. In this case, the $5,000 excess contribution from 2016 can be carried forward to 2017, and combined with the $20,000 contribution to make a total of $25,000. However, the 2017 deduction is limited to $15,000, so the excess $10,000 contribution cannot be deducted. Therefore, the 2017 contribution must be applied first against the $15,000 limitation, leaving a carryforward of $10,000 for future years.

Heron Corporation,a Calendar Year C Corporation,had an Excess Charitable Contribution