GenerUs Inc.'s board of directors approved a charitable cash contribution to FoodBank, a qualified non-profit organization, in November of 2016. GenerUs made payment to FoodBank on February 2, 2017. GenerUs Inc. (a calendar-year corporation) may claim a deduction for the contribution on its 2016 tax return.

Question

Quizplus · Accepted Answer

The contribution was approved in 2016 and payment was made in 2017, but according to the IRS guidelines, a contribution is considered made when the taxpayer parts with control of the funds, which would be on the date of payment. Therefore, GenerUs can claim the deduction on its 2016 tax return.